Gujarat 060710

GUJARAT
April 2010
GUJARAT
April 2010
Investment climate of a state is determined by a mix of factors

Skilled and cost-effective labour Labour market flexibility Labour relations Availability of raw materials and natural resources
Procedures for entry and exit of firms Industrial regulation, labour regulation, other government regulations Certainty about rules and regulations Security, law and order situation
Resources/Inputs Incentives to industry

Investment climate of a state

Regulatory framework Physical and social infrastructure
Tax incentives and exemptions Investment subsidies and other incentives Availability of finance at cost-effective terms Incentives for foreign direct investment (FDI) Profitability of the industry
Condition of physical infrastructure such as power, water, roads, etc. Information infrastructure such as telecom, IT, etc. Social infrastructure such as educational and medical facilities
GUJARAT
April 2010
Contents
Advantage Gujarat State economy and socio-economic profile Infrastructure status State policies and incentives Business opportunities Doing business in Gujarat
ADVANTAGE GUJARAT Gujarat April 2010
Gujarat State profile
Gujarat is spread over an area of 196,024 sq km (6 per cent of Indias land area). It is located on the Western coast of India and has the longest coastline of 1,600 km in the country. The state has 26 districts. Gandhinagar is the capital city. Ahmedabad,Vadodara, Surat, Rajkot, Bhavnagar and Jamnagar are the other key cities. The state has three major groups of rivers flowing in different directions. The major rivers of central and Northern Gujarat are Narmada, Sabarmati and Mahi. Rivers flowing through the Saurashtra region are Mithi, Khari, Bhadar, Shetrunji and Bhogavo. Rivers in the Southern part of the state include Narmada,Tapi, Purna, Ambika, Auranga and Damanganga. There are eight agro climatic zones in the state that support cultivation of a wide range of crops. The most commonly spoken language of the state is Gujarati. Hindi and English are the other Indian languages used.
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Source: Maps of India
Advantage Gujarat (1/2)

Industrially developed state Gujarat is the petro capital of India, contributing 34 per cent to petrochemicals and 27 per cent to the countrys chemicals and pharmaceuticals business. It has achieved the distinction of being one of the most industrially developed states. Accounting for 5 per cent of the total Indian population, Gujarat contributes 21 per cent to Indias exports and 13 per cent to its industrial production. The industrial sector had a 12.5 per cent growth in 2009. Facilitating infrastructure Gujarat has excellent infrastructure as compared to the other states. There are 42 ports, 13 domestic airport and one international airport. The state also has extensive road and rail network. The urban and rural areas have 24-hour power supply. A 2,200 km gas-grid supplies gas to the industrial areas. There are 83 product clusters, 202 industrial estates, 60 special economic zones (SEZ) and upcoming infrastructure on the Delhi-Mumbai Dedicated Freight corridor. Availability of skilled manpower Gujarat has good educational infrastructure with premier institutes in management, fashion, design, infrastructure planning and pharmaceuticals. Also, there are industrial training institutes in each district for training manpower for shop floor level. The State Government has many initiatives to encourage innovation in the education sector.
Advantage Gujarat (2/2)

Policy support Gujarat is the only state in India where the State Government has framed policies in almost all key sectors such as industry, power, ports, road, IT, agriculture, minerals and tourism. Gujarats Industrial Policy, 2009, offers attractive incentives and concessions for prospective investors.
Growing economy and industry Gujarat has a high growth rate of about 16 per cent. A robust financial growth and presence of diverse industry sectors with leading national and international companies makes it one of the most attractive investment destinations in the country.
Investment destination of choice According to the outlook for corporate investments by the Reserve Bank of India (RBI), Gujarat ranks first in private corporate investments in the country. As per Deutsche Bank research, Gujarat offers the most favourable outlook for infrastructure projects.
Gujarat in figures (1/2)

Parameter Economy GSDP as a percentage of all states GSDP Average GSDP growth rate (%) Per capita GSDP (US$) Physical Infrastructure Installed power capacity (MW) GSM cellular subscribers (No) Broadband subscribers (No) National Highways (km) Rail network (km) Major and minor ports (No) Airports (No) Social Indicators Literacy rate (%) Birth rate (per 1,000 population) 69.14 23 64.84 23.1 Socio-Economic Review of Gujarat, 2007-08 Central Bureau of Health Intelligence, 2007 9,527.2 21,801,744 322,656 3,245.0 5,188.0 1 +40 14 98,996.4 367,328,179 4,981,976 70,548.0 63,465.0 12 + 187 133 Central Electricity Authority, as of March 2009 Cellular Operators Association of India, as of November 2009 As of October 2008 Ministry of Road Transport & Highways, 2007-08 Socio-Economic Review of Gujarat, 2007-08, as of March 2005 Ministry of Shipping Industry sources 7.6 12.7 1,355.7 100.0 7.5 998.1 CMIE, 2007-08 CMIE, 1999-00 to 2007-08 CMIE, 2007-08 Gujarat All-states Source
Gujarat in figures (2/2)

Parameter Ease of doing business FDI inflows (US$ billion) Outstanding investments (US$ billion) Industrial Infrastructure PPP projects (No) SEZ (No) 29 8 460 98 www.pppindiadatabases.com Functional as of August 2009, www.sezindia.nic.in 6.3 149.4 107.5 1,709.7 Department of Commerce & Industry, April 2000 to October 2009 CMIE, as of December 2008 Gujarat All-states Source
PPP: public private partnership: SEZ: special economic zone
Parameter Policy support Sectors with specific policies Availability of labour
Gujarat Government Industry, SEZ, ports, mineral, power, IT, road Adequate
Key industries with policy thrust and factor advantages

Industry attractiveness matrix High Power IT Ports Dairy Mineral based industries Agro and food processing
Policy thrust
Tourism Medium Chemicals and petrochemicals Gems and jewellery
Pharmaceuticals and biotech Oil and gas Textiles and apparels Engineering and auto
Low Medium High
Factor advantage
*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital
GUJARAT
April 2010
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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010
Socio-economic snapshot of Gujarat

Parameters Capital Geographical area (sq km) Administrative districts (No) Population density (persons per sq km)* Total population (million)* Male population (million) Female population (million) Population growth rate 1991-2001 (%) Sex ratio (females per 1,000 males)* Literacy rate (%)* Male (%) Female (%) Life expectancy at birth (2006-10) Male (years) Female (years)
Source: Socio-Economic Review of Gujarat, 2007-08 *Census 2001
Gujarat Gandhinagar 196,024 26 258 50.7 26.4 24.3 22.7 920 69.1 79.7 57.8 67.2 71.0
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Gujarats GSDP
At current prices, the Gross State Domestic Product (GSDP) of Gujarat was about US$ 76.3 billion in 2007-08. The average annual GSDP growth rate from 1999-2000 to 2007-08, was about 15.8 per cent. Gujarat was among the states that recorded very high GSDP growth rates in the last decade, compared to the other states.
Gujarats GSDP (US$ billion)

2007-08 2006-07 60.6 48.8 41.8 38.5 31.0 25.7 23.0 23.6 0.0 Source: CMIE 20.0 40.0 60.0 80.0 100.0 CAGR: 15.8% 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 76.3
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Gujarats NSDP
The net state domestic product (NSDP) of Gujarat was about US$ 64.1 billion in 2007-08. The average annual NSDP growth rate from 1999-2000 to 2007-08 was about 15.8 per cent.
Gujarats NSDP (US$ billion)

2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 0 Source: CMIE 20 19.1 19.9 40 60 80 25.9 21.2 32.6 40.1 34.3 CAGR: 15.8% 49.6 64.1
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Gujarats economy has contributions from all three sectors
In 2007-08, the tertiary sector contributed 46.2 per cent to the states GSDP at current prices. It was followed by the secondary sector (33.0 per cent). The share of the primary sector in GSDP was 20.8 per cent in 2007-08 vis--vis 20.3 per cent in 1999-2000, the increase being driven by the mining and quarrying sub-sector. The mining and quarrying sub-sector registered the highest growth of 16.4 per cent between 1999-2000 and 2007-08. The primary sector had a growth rate of 13.2 per cent during this period. It was followed by the tertiary sector at 12.8 per cent and the secondary sector at 12.5 per cent.
Percentage distribution of GSDP CAGR

46.1% 46.2% 12.8%
33.6% 20.3% 1999-2000 Primary Sector Source: CMIE Secondary Sector
33.0% 20.9% 2007-08 Tertiary Sector
12.5% 13.2%
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Per capita GSDP

Gujarats per capita GSDP in 2007-08 was US$1,355.7. The per capita GSDP increased at a CAGR of 13.8 per cent between 1999-2000 and 2007-08. The state ranks amongst the top five with regards to per capita income. The state has registered a healthy growth in per capita income over the years because of the growth of industries and the diverse investments made in the state.
Per capita GSDP
1,600.0 1,400.0 1,200.0 (US$) 1,000.0 800.0 600.0 400.0 200.0 0.0 1999-2000 2000-01 Source: CMIE 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 480.6 458.6 500.9 726.5 596.0 777.7 893.8 1,092.4 1,355.7
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Employment distribution in Gujarat
Manufacturing accounts for largest share (41 per cent) of employment across industries in Gujarat. The total employment in the public and private sectors has increased from 1.76 million in June 2006 to 1.8 million in June 2007. As of June 2007, the public sector establishments employed 0.79 million while the level was1.01 million in the private sector. As of June 2007, the public sector employed 150,000 women (18.66 per cent) while, the private sector employed 0.1 million (10.21 per cent).
Employment by industry
Mining and quarrying Agriculture, forestry and fishing Trade and restaurants Construction Power, gas and water Finance and real estate Transport and communications Community and social services Manufacturing 0.0 0.2 0.4 million Source: Socio-Economic Review Gujarat State 200708, Directorate of Economics & Statistics, as of June 2007 0.6 0.02 0.02 0.05 0.05 0.06 0.12 0.15 0.60 0.73 0.8
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Brief profiles of key cities in Gujarat

The key cities in Gujarat are Gandhinagar, Ahmedabad, Bhavnagar, Jamnagar, Junagadh, Kutchh, Rajkot, Surat and Vadodara (Baroda).
Gandhinagar, the state capital is named after Mahatma Gandhi and it is situated 32 km away from Ahmedabad. It is essentially the seat of the Government, but is transforming into a trade centre. Ahmedabad is the largest city and the commercial hub of the state. Traditionally, a textile industry centre of the country, the city is a also becoming a place for education, IT and scientific research industries. Bhavnagar is the sixth-largest city of Gujarat, and the third largest city in the Saurashtra region in terms of area. Bhavnagar is also known as the cultural capital of Saurashtra. It is also a trade centre for cotton goods. Surat is recognised globally for its textiles, chemicals and diamond industries. Around 92 per cent of the worlds diamonds are cut and polished in Surat. Rajkot is a major tourist destination and a centre for arts. The city contributes to the states economy with many heavy and small scale industries. Vadodara (Baroda) is the cultural capital of Gujarat. It also has several industries, particularly, related to the petroleum, fertiliser and energy sectors.
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Key industries in Gujarat (1/2)
Gujarat contributes 16 per cent to the industrial production of the country.
Key industries in Gujarat

There are12 major industry groups that together account for 86 per cent of total factories, 96 per cent of total fixed capital investment, 94 per cent of the value of output and 95 per cent of valueaddition in the states industrial products. Gujarat is a leader in several industrial sectors such as chemicals, petrochemicals, drugs and pharmaceuticals, dairy, cement and ceramics, gems and jewellery, textiles and engineering. The state has over 1,200 large units and more than 345,000 micro, small and medium enterprises. As of 2006-07, it had 10,100 small scale enterprises.
Agro and food processing Dairy Chemicals and petrochemicals Textiles and apparels Engineering and auto Gems and jewellery Oil and gas Pharmaceuticals and biotechnology IT Minerals Ports Power Tourism
Source: Government of Gujarat website
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Key industries in Gujarat (2/2)
Petroleum accounts for the highest industrial production in Gujarat with a 34 per cent share. It is followed by chemicals and pharmaceuticals with 27 per cent share. Gujarat is: The worlds largest producer of processed diamonds and wall clocks.
Share of industry sectors in Gujarat
2% 6% 6% 7% 9% 9% 34% 27%
Chemicals and pharma Petroleum Engineering Industries Food Processing
The worlds largest gas-based, singlelocation sponge iron plant. The worlds largest producer of castor and cumin. The worlds third largest producer of denim. The worlds third largest grass root petroleum refinery (at Jamnagar). Indias largest producer of cotton. Home to Indias first liquefied natural gas (LNG) port terminal at Hazira.
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Textiles & Apparel Metallurgical Industries Mineral based industries Others
Source: Vibrant Gujarat summit, 2009
Agriculture and dairy
Gujarat has a robust agricultural economy; the total crop area covers more than 50 per cent of the states total land area. The top-ten crops account for over 96 per cent of the total crop production of the state. In 2006-07, the total production of the major crops of the state was over 36.7 million tonnes. Of these, sugarcane was the major crop. It was followed by coconut, wheat and onions. The other major crops grown in the state include tobacco, cotton, groundnut, rice, jowar (sorghum), bajra (millets), oilseeds, maize, tur and gram. Animal husbandry and dairying have a vital role in the rural economy of Gujarat. Gujarat has been a pioneer in cooperative dairy farming, with over a million members, now. Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets milk products under the well known Amul brand is the states largest milk producer and is based in Anand.
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Crop Sugarcane Cotton Wheat Onions Groundnuts Rice Potatoes Bajra Rapeseed and mustard Castor
Source: CMIE
Annual production (000 tonnes) 15,630 8,790 3,000 2,128 1,440 1,390 1,210 1,020 500 490
Gujarats exports

Gujarat contributes 19.2 per cent to Indias total exports of merchandised goods and services. In 2006-07, the states exports and imports were at US$ 126,362 million and US$ 185,749 million, respectively. Exports include products from sectors such as textiles, petroleum, chemicals, pharmaceuticals, engineering, and gems and jewellery. Exports traffic handled from the Kandla port amounted to 16.51 million tonnes in 2007-08. Export products from intermediate and minor ports include naphtha, petrol, clinker, cement, oil cakes, bauxite, paraxylene, salt, soda ash, food grains, cement clinker, ethylene, etc.
Source: Industries Commissionerate, Gujarat Government
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Investments and FDI inflows
According to the Reserve Bank of India, FDI inflows from April 2000 to October 2009 amounted to US$ 6.3 billion. As of December 2008, the outstanding investment in the state was US$ 149 billion. Manufacturing and electricity sectors accounted for about 67 per cent of states total outstanding investment. Gujarats dedicated investment regions: Special Investment Region (SIR); Delhi-Mumbai Industrial Corridor (DMIC); Petroleum, Chemicals and Petrochemical Investment Region (PCPIR); Gujarat International Finance Tec-City (GIFT) and Gandhinagar knowledge corridor.
Breakup of investments by sector
4.3% 21.7%
5.7% 30.6%
Manufacturing Mining Electricity Services Irrigation Construction 1.4%
36.3%
Source: CMIE, as of December 2008
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GUJARAT
April 2010
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INFRASTRUCTURE STATUS Gujarat April 2010
Road network
As of 2009, the state has a road network of 74,877 km including National Highways (3,245 km), State Highways (19,163 km), major district roads (20,707 km), other district roads (10,503 km) and village roads (21,259). About 38.2 per cent of total expressways and National Highways in the state are multi-lane; 87.9 percent of total roads are asphalt-surfaced. In addition, there is 98.86 per cent rural connectivity through all-weather roads. It is among the highest in India. Pragatipath Yojana, a State Government initiative introduced in 2005, envisages the development of nine high-speed corridors and widening of highways to connect the tribal, coastal, industrial and rural areas with mainstream areas.
Source: Ministry of Road Transport & Highways, Government of India, Gujarat State Road Development Corporation, Socio-Economic Review, 2007-08
Road map of Gujarat
National Highways State Highways Railways
Source: Gujarat State Road Development Corporation
Road Type National Highways State Highways Major district roads Other district roads Village roads
Road length (km) 3,245 19,163 20,707 10,503 21,259
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Ports (1/3)
The state has one of the strongest port infrastructures in India. It is the first state in India to take up port privatisation. Gujarat has 42 ports along a 1,600 km coastline, including one major port at Kandla and 41 minor ports. The state has five direct berthing commercial ports, seven direct berthing captive port terminals and four lighteragecargo ports. It handled the largest (79.84 per cent) share of cargo traffic in Indias minor and intermediate ports, and 11.5 per cent in Indias major ports in 2008-09. The state has two LNG terminals that offer transportation facilities for natural gas, crude oil and petroleum products from the Middle East and Europe. The state plans to have modern mechanised cargo handling systems in all the new ports. Ten green field port projects as envisaged in the Port Policy, 2005, are now functional.
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Port infrastructure in Gujarat
Jakhau Kandla Mundra Navlakhi Jamnagar Khambhat Okha Sikka Dholera Positra Bhavnagar Dahej Mithivirdi Porbandar Magdalla Mahuva Hazira Sutrapada Pipava Vansi Simar v Borsi Jafrabad Maroli Major ports Private sector ports GMB ports Source: Ports of Gujarat sector profile 2008-09, Gujarat Maritime Board (GMB)
Ports (2/3)
The state has a vast hinterland comprising key Northern and central Indian states. It also has a large external trade potential given its vast coastline. In 2007-08, minor ports of Gujarat handled 20 per cent of the total cargo handled by all Indian ports. The total port capacity of Gujarat grew at 46.6 per cent, from 135 million metric tonnes (MMT) in 2001 to 198 MMT in 2007-08.
Source: Ports of Gujarat sector profile 2008-09, Gujarat Government
Main ports of Gujarat
Kandla Mundhra Okha Sikka
Navlakhi Jamnagar
Porbandhar Dahej Hazira Pipavav Magdalla
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Ports (3/3)
Many upcoming ports are being developed as captive ports to catering to specific company and industry requirements. The state undertakes fast-track clearance in establishment of ports through private participation. There is an increase in connectivity to nonmajor ports owing to the development of the Delhi-Mumbai Dedicated Freight Corridor. More than 4,800 ships and 1,000 sailing vessels visit the ports of Gujarat every year.
Source: Ports of Gujarat, sector profile 2008-09, Gujarat Government
Key private sector stakeholders in Gujarats ports sector Gujarat Adani Port Limited Peninsular & Oriental Steam Navigation Company Gujarat Pipavav Port Limited Reliance Industries Limited Maersk Welspun Petronet LNG Shell
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Airports
The state has 13 domestic airports (the highest in any state) and one international airport at Ahmedabad. The Sardar Vallabhai Patel International Airport in Ahmedabad is Indias eighth-busiest airport with an average of 150 aircraft movements a day. The airport is under renovation and once work is complete, the number of parking bays will increase from 15 to 45 and both the international and domestic terminals will have four aero-bridges each. In addition, there are domestic airports at Bhavnagar, Bhuj, Jamnagar, Kandla, Keshod, Junagad h, Porbandar, Rajkot, Surat,Vadodara, Zalawad and Mehsana. A feasibility study for an international airport at Fedra in Dholera (about 130 km away from Ahmedabad) has been completed in January 2010. Once ready, the airport could be useful for both passenger and cargo purposes.
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Airports in Gujarat
Bhuj Kandla
Mehsana
Ahmedabad Vadodara
Zalawad Jamnagar Porbandhar Rajkot Junagadh Keshod
Bhavnagar
Surat
International Airport Domestic Airport
Railways
The state had a railway network of 5,188 km as of 2007. It comprises 2,736 km of broad gauge, 1,665 km of metre gauge and 787 km of narrrow gauge. There are 21 major railway stations in Gujarat. The important stations are Ahmedabad, Anand, Bhavnagar, Bhuj, Godhra, Porb andhar, Rajkot,Vadodara (Baroda) and Valsad.
Key railway stations in Gujarat
Bhuj Godhra Anand Rajkot Porbandhar Bhavnagar Valsad Vadodara
Ahmedabad
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Power and gas (1/2)
As of March 2009, Gujarat had a total installed power generation capacity of 9,527.2 MW, which comprised 5,701.3 MW under state utilities and 3,825.9 MW under the private sector. The installed power capacity in the state increased from 7,352.5 MW in 2001-02 to 9,527.2 MW in 2008-09. There are 29 power stations supplying power to Gujarat, of which 24 are located in the state and five are located outside the state. Over 18,000 villages are supplied with 24hour, three-phase electricity under the Jyotirgram Yojana. Transmission losses for 2007-08 were 3.85 per cent, which is amongst the lowest in the country. Gujarat State Petroleum Corporations (GSPC) gas company is currently supplying piped natural gas (PNG) to nearly 59,709 domestic households, 370 commercial establishments and 551 industrial customers.
Installed power capacity (MW)

12,000 10,000 8,000 6,000 4,000 2,000 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Source: Central Electricity Authority 7,352.5 7,323.5 7,463.4 7,678.9 8,047.1 8,180.5 9,527.2 8,605.3
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Power and gas (2/2)
GSPC has holdings in over 42 oil and gas fields across India, in addition to exploration blocks in Australia, Egypt and Yemen. GSPC is known for its discovery of the largest gas reserve in India at the Krishna-Godavari Basin. Gujarat has a 2,200 km integrated gas-grid that is operated on an open access, common carrier principle.
Integrated gas-grid Current transmission Total length Completed Under construction Planned expansion 25 mmscmd* 2,200 km 1,420 km 450 km 330 km
Integrated gas grid for energy security
Mehsana Mundra Kalol Ahmedabad Gandhar Dholera Dahej Hazira Pipavav
Palej Ankleshwar Bharuch
Commissioned Under construction Tendering
Existing LNG terminal Proposed LNG terminal Oil & gas reserves
Sources: Beyond State Boundaries, Government of Gujarat 2008-09; mmscmd: million metric standard cubic metres per day ; *includes 10 mmscmd of re-gassified LNG
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Telecom and IT (1/2)
According to estimates of the Telecom Regulatory Authority of India, Gujarat had 2.3 million direct exchange lines in 2008. The state had 21.8 million cellular subscribers and 322,656 internet/broadband subscribers in 2009. All district headquarters are provided with back-up support of transportable V-SAT terminals. The state also has the State Disaster Resource Network (SDRN), a database of disaster management related inventory. The Bhaskaracharya Institute for Space Applications and Geoinformatics (BISAG) has satellite communication facilities with a dedicated bandwidth.
Telecom infrastructure* GSM cellular subscribers: 2,18,01,744 Internet/broadband subscribers: 322,656

*As of 2009
Telecom operators in Gujarat

Vodafone Essar IDEA Cellular Bharti Airtel BSNL Reliance Communications
Source: Cellular Operators Association of India
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Telecom and IT (2/2)
Gujarat State Wide Area Network (GSWAN), worlds second largest IP-based WAN connecting over 2,800 government offices. The state has the Secretariat Integrated Communication Network (SICN) with over 7,500 voice connections. There is facility for online redressing of citizens grievances through the State Wide Grievance Attention [service on public] Grievances [by application of] Technology (SWAGAT). Integrated Workflow and Document Management System (IWDMS) streamlines documentation in government offices.
Gujarat State Wide Area Network (GSWAN)
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Urban Infrastructure water
The development of a water grid was proposed to overcome the uneven availability of water in the state. As of 2009,1,874 km bulk pipelines and about 100,000 km of distribution pipelines have been laid across the state. Of the states18,594 villages, the water grid connects almost 9,600 villages. As of 2009, there are over 14,000 Pani Samitis (water committees). Water conservation schemes include: 118,000 check dams 55,900 bori bandhs (dams made of sand bags) Interlinking of 21 rivers in central and North Gujarat through Sujalam Sufalam Yojana. 18,000 deepened ponds. The Gujarat Water Users Participatory Irrigation Management Bill, 2007, authorises farmers to constitute Water Users Associations (WUA) for the management of canals handed over, after rehabilitation by the Government.
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State-wide water grid
Surface water Ground water Total

* million cubic metres
38,100 mcm* 12,000 mcm 50,100 mcm
Source: Beyond State Boundaries, Government of Gujarat, 2008-09
Clean transport initiative through CNG and BRTS
The state envisages replacement of conventional fuels by compressed natural gas (CNG) in all buses and auto rickshaws. 141 CNG stations already established. In Ahmedabad, CNG auto rickshaws have been made mandatory.
Ahmedabad BRTS map
There are1,181 CNG buses of Gujarat State Road Transport Corporation (GSRTC), 3,750 CNG private buses, 114,446 CNG auto rickshaws and 50,708 cars that run on CNG. The bus rapid transport system (BRTS) is being implemented jointly by the State Government, Gujarat Infrastructure Development Board (GIDB), Ahmedabad Municipal Corporation (AMC) and Ahmedabad Urban Development Authority (AUDA). Approved length: 88.5 km (Phase-I: 58 km + Phase-II: 30.5 km). Phase-I is already in operation.The entire project is to be completed by December 2010.
Source: Beyond State Boundaries, Government of Gujarat, 2008-09
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Other initiatives in urban infrastructure

River-front development
JNNURM
Development around the rivers Sabarmati and Tapi have been undertaken to revitalise the city and improve existing infrastructure. It also envisages development of commercial, residential and recreational facilities on the river-front. The Sabarmati River Front Development Corporation honoured with the Prime Ministers Award for Excellence in Urban Planning and Design.
Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 68 projects costing US$ 1.2 billion have been sanctioned for Gujarat. The projects have been sanctioned for completion between 2005-06 and 2009-2010.The key areas of development are water supply, sewerage, solid-waste management, stormwater drainage, mass-rapid transport system, construction of flyovers and water treatment. The GIDB has been constituted for conceiving infrastructure projects, developing and preparing them. GIDB also conducts pre-feasibility and feasibility studies for various projects.
Other reforms

Municipal accounting Solid-waste management Energy efficiency

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Key public private partnership (PPP) projects

Project name Hazira LNG terminal Dahej LNG terminal Mundra port Himmatnagar bypass Gandhidham-Palanpur railway project International Airport-Ahmedabad-Dholera Surendranagar-Pipapav railway project Bhavnagar-Trapaj and Budhel-Vartej road project Transport Nagar at Bhavnagar Dahej-Bharuch gauge conversion Kutch RO-RO terminal project Vadodara-Halol Toll road Sector Ports Ports Ports Roads Railways Aviation Railways Roads Roads Railways Ports Roads PPP type BOOT BOOT BOOT BOT-Toll BOT-Toll BOT-Toll BOT BOT BOT-Toll BOOT BOT-Toll Project cost (US$ million) 806.5 497.2 467.6 152.2 108.7 543.1 88.0 50 10.9 42.8 20.6 38.0 Stage In operation In operation In operation In operation In operation In pipeline In pipeline In pipeline In pipeline In pipeline In pipeline In pipeline
Source: pppindiadatabase.com; BOOT Build-Own-Operate-Transfer; BOT Build-Operate-Transfer; RO-RO: roll-on roll-off
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Education sector (1/2)
Kanya Kelavani is a state-wide girl child education campaign to increase enrolment ratio and decrease drop-out rates: It covers 28,346 primary schools. It has resulted in increase in net-enrolment ratio from 75 per cent to 98.98 per cent. Total number of students enrolled in 2008 was 7.7 million, of which 3.5 million were girls. Around 33,410 girls have benefited from this fund. Vidya Laxmi Yojana has been implemented to achieve 100 per cent enrolment and retention of girls in primary schools: Around 699,000 girls have been given the Vidya Laxmi Bond between 2003-04 and 2007-08. Vidhyadeep Yojna has been implemented where in case of an unfortunate death of a child studying in the school, the parents or the guardians of the child are offered US$ 500 as an insurance amount. About 8.5 million students are insured under this scheme.
Gujarats school education statistics as of 2008-09 Number of schools Primary: 39,064* Secondary: 7,967* Higher: 903* All schools: 32 Primary: 32 Upper primary: 33 Primary: 86.0 Upper primary: 41.9 238,030
Pupil-teacher ratio
Net enrolment ratio Number of Teachers
Source: National University of Educational Planning and Administration, DISE, 2008-09; *as of 2006-07
Literacy rates (%) Literacy rate Male literacy Female literacy

Source: Census of India, 2001
69.1 79.7 57.8
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Education sector (2/2)
Sakshardeep is a literacy campaign for adult education, under which 1.27 million adults had been educated until 2006. Society for Creating of Opportunity through Proficiency in English (SCOPE) is an initiative of the Government to make Gujarati youth proficient in business English.
Educational infrastructure as of 2009

Premier educational and research institutions in Gujarat

Universities: 29 Medical colleges: 13 Engineering : 54 Diploma colleges: 57
Indian Institute of Management, Ahmedabad National Institute of Technology, Surat Indian Institute of Technology, Gandhinagar Sardar Vallabhbhai National Institute of Technology, Surat Institute of Rural Management (IRMA), Anand Mudra Institute of Communication, Ahmedabad (MICA) National Institute of Fashion Technology (NIFT), Gandhinagar National Institute of Design, Ahmedabad Centre for Environment Planning and Technology, Ahmedabad Central Salt and Marine Chemicals Research Institute Council for Scientific and Industrial Research
Source: website Gujarat Government
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Health infrastructure
The state currently has 1,080 primary health centres (PHC), 7,274 sub-centres, 273 community health centres (CHC) and 85 mobile healthcare units.
Health infrastructure as of 2008

Key health schemes of Gujarat Government Chiranjeevi scheme
Primary health centres: 1,080 Sub-centres: 7,274 Community health centres: 273 Mobile care units: 85 District hospitals: 23 Referral hospitals: 409 Rural dispensaries: 8,347 Ayurvedic hospitals: 48 Ayurvedic dispensaries: 493 Health indicators as of 2008
Introduced to reduce maternity-related deaths and infant mortality; involves collaborations between government and private sector specialists to facilitate safe deliveries for the economically weaker sections. Bal Sakha Yojna An initiative under the Chiranjeevi scheme. Provided facilities for proper check up of newborns and infants by paediatricians. The main aim of the scheme is to bring down the Infant Mortality Rate (IMR) and the Maternal Mortality Rate (MMR). Centre-aided health insurance scheme The scheme has been launched in five districts in Gujarat and covers about 500,000 person with incomes-level in the below poverty line (BPL) category. Total insured amount is about US$ 650 per family.
Birth rate (per 1,000 population)** Death rate (per thousand persons)** Infant mortality rate (per thousand live births)**
23 6.9 50
Source: RHS Bulletin, Ministry of Health and family Welfare, March 2008
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Cultural infrastructure

Various dance forms of the state include dandiya raas, garba, garbi, rasaka, tippani and padhar. Many fairs and festivals are celebrated in the state such as Bhavnath mahadev mela, Dangs darbar, Vichitra mela, Dhrang fair, Trinetreshwar mahadev fair, Vautha mela, Shamlaji mela, Kutch mahotsav, Bhadra purnima, Kavant mela, Modhera (dance festival), Makar sankranthi, International kite festival (Uttarayan) and navrathri festival. Museums in the state include The Gandhi Smarak Sangrahalaya (Ahmedabad), Calico musuem of textiles (Ahmedabad),Vadodara museum (Vadodara), Maharaja Fatehsingh museum (Vadodara), Gandhi Museum (Bhavnagar), Kite museum (Ahmedabad),Watson museum (Rajkot) and the Lady Wilson museum (Valsad). Prominent stadiums in the state include the Sardar Patel cricket stadium (Ahmedabad), Moti Bagh stadium (Vadodara), Indian Petrochemicals Corporation Ltd (IPCL) sports complex (Vadodara) and the Surat indoor stadium. Golf courses in the state include Gaekwad Baroda golf club (Vadodara), Gulmohar Greens golf & country club (Ahmedabad), Aalloa Hills golf resort (Ahmedabad), Kensville golf and country club (Ahemdabad), Cambay golf club (Gandhinagar), and an integrated golf course in Ganesh Housing Corporation (Ahmedabad). A world-class sporting infrastructure complex is coming up in Ahmedabad in 2011 at a cost of US$ 65 million. The facility which will incorporate a 25,000 seat stadium, is a collaboration between the Government of Gujarat and SE TransStadia Private Limited.
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Industrial clusters
The states manufacturing industry is supported by 37, 312 micro, small and medium enterprises (MSMEs). Gujarat has 83 product clusters. The Cluster Development Scheme has been launched for furthering the growth of product clusters. Successful clusters include ceramics cluster at Morbi, brass- parts cluster at Jamnagar, fishprocessing cluster at Veraval and power-looms cluster at Ahmedabad. Gujarat has 202 industrial estates established by the Gujarat Industrial Development Corporation (GIDC) for specific sectors such as chemicals, electronics, gems, apparels and granite. The State Government has taken care to set up industrial estates on non-agricultural land after assessment of industrial viability.
6
Number of clusters as per industry type

17 30 Engineering Textiles Food Processing Chemicals 7 10 13 Minerals Others
Product clusters
Agro Processing Soda ash and salt-based industries, cement and steel Mehsana pipes Kachch Gandhinagar KANDLA Engineering and ceramics Ahmedabad Morbi Chemicals, Petroche MUNDRA micals, Pharma, Tex Okha Surendranagar tiles Anand Rajkot Vadodara Petroleum and brass parts Jamnagar Ankleshwar DAHEJ Amreli Bhavnagar Soda ash and salt-based Sutrapada industries Kodinar PIPAVAV Surat HAZIRA Valsad Navsari
Source: Industries Commissionerate, Government of Gujarat
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Special Economic Zones
As of December 2009, Gujarat had 60 approved SEZs with 47 sector-specific and13 multi-product SEZs. Gujarat ranks first in terms of total area covered under SEZs in India. It is also a leading SEZ state with the highest geographical area of 27,125 hectares under SEZ development. Gujarats three operational SEZs are: Kandla SEZ SIR SEZ Surat Apparel Park
1 8
Key sector-wise break up of SEZs

Multiproduct/Multiservices 13 Electronics/IT/ITES Textiles and apparels 9 Pharma/Chemicals Engineering 8 4 Others 17 Port based multiproduct SEZs
It is the first state to formulate an SEZ policy, which includes flexible labour laws and exit options for investors. SEZs in Gujarat get a 10-year corporate tax holiday on export profit: 100 per cent for the initial five years and 50 per cent for the next five years.
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Source: Vibrant Gujarat 2009 summit
Key investment regions in Gujarat (1/2)
The area under the Delhi-Mumbai Industrial Corridor (DMIC) falling in Gujarat includes: 62 per cent of total area (18 districts out of 26)
DMIC region
Haryana Rajasthan
Uttaranchal
74 per cent of population (37 million).
Dadri Uttar Pradesh
Gujarats share of the Delhi-Mumbai dedicated freight corridor (DFC) of 1,500 km is 38 per cent (564 km). The states regions falling in this corridor are: The Ahmedabad-Dholera investment region

Gujarat
Madhya Pradesh Maharashtra
Arabian Sea J.N.Port
The Vadodara-Ankleshwar industrial area The Palanpur-Mehsana industrial area The Bharuch-Dahej investment region The Surat-Navsari investment area The Valsad-Umbergaon industrial area
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End Terminals DFC Alignment
Key investment regions in Gujarat (2/2)
Other regions include the Gujarat International Finance-Tec City (GIFT), a collaboration between Gujarat Urban Development Company Limited (GUDC) and Infrastructure Leasing and Financial Services Co Ltd (IL&FS). It is being developed as a central finance and business district.
Other investment regions in Gujarat
Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), Dahej Special Investment Region (SIR), Dholera.
Source: Industries Commissionerate, Gujarat Government
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Major investments in the infrastructure sector
As of December 2008, over US$ 61.6 billion of investments have been made in ramping up Gujarats infrastructure. About 31 per cent of the investments made in infrastructure have been in the area of power generation and distribution. Shipping and roads are the other key infrastructure sectors attracting investments.
Infrastructure type Power* Shipping Roads Railways Transport support services Airports
*Generation and distribution Source: CMIE; as of December 2008
Investments (US$ million) 19,076.9 9,404.1 2,311.8 998.9 119.8 86.8
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GUJARAT
April 2010
Contents
47
STATE POLICIES AND INCENTIVES Gujarat April 2010
Sector-specific policies (1/14)

Gujarat Industrial Policy, 2009 Vision: To facilitate investments in the state, generate employment and adhere to high quality standards Key initiatives and objectives: Creation of opportunities for vigorous industrial and economic activities in the declared backward talukas.
Special investment regions: convergence of industrial, social and urban infrastructure. Leverage the Delhi-Mumbai Industrial Corridor (DMIC) and the influence area in Gujarat. To promote and facilitate mega projects in the critical sectors to generate a multiplier-effect of employment creation and and inclusive development in the state. Promotion of cluster development to ensure competitiveness and improvement of MSMEs. Promotion of industries such as textiles and apparels, agri-business, fisheries, gems and jewellery, IT/ITeS, ports and related industries by providing adequate thrust to the sector by way of developing specific package, which would make it an important catalyst for industrial and economic development of the state. To ensure that the state has a strong information dissemination system and the administration is industry-friendly in terms of quick responses to queries, application clearances, zero red-tape, availability of adequate land for facilitating industrial development, etc. To provide financial assistance for infrastructure development to new industrial estates in the focus sectors. Provide efficient logistics services for industrial growth. To augment the power requirement of the state. Enhancement of technical competence and manpower. Reward for adoption of new technologies, business sophistication and innovation.
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Gujarat Industrial Policy, 2009 (continued) Incentives and concessions:
In the focus sectors such as textiles and apparels, gems and jewellery, innovative projects, mega projects, informal sector, agri-business, fisheries, IT/ knowledge-based industries, port and related industries and power sector (non-conventional energy): units having investment of US$ 217 million and employment of 2,000 will be defined as mega units. Whereas in core infrastructure sector, the units having investment of US$ 217 million will be treated as mega units. In the eventuality of mega projects requiring support of ancillary units and if the same is to be extended by small and medium enterprises (SMEs), then for setting up such units, GIDC would identify land and the incentives that are otherwise extended to the SME sector would be applicable to these ancillary units also. Financial assistance for IT units: Special incentives for mega IT/ITeS projects (investment above US$ 10 million) creating employment above a minimum threshold level.
All new IT units are exempted from payment of electricity duty for a period of five years and exemption from power cuts. Stamp duty exemption to units in IT parks and IT SEZs.
Financial assistance to hire experts in the areas of technology, marketing and finance for sick-units. Financial assistance for SMEs: For participation in international trade fairs, State Government will partially defray the costs of rent, literature and display materials.
For industrial associations participating in international trade fairs, the Government will provide financial support.
Venture capital funding for projects adopting innovative technology. Credit-linked financial support by way of interest subsidy to spinning, weaving, knitting, apparel and machine carpeting.
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Gujarat Industrial Policy, 2009 (continued) Other incentives and concessions:
In the fisheries sector, incentives would be provided to trawlers that go for deep-sea fishing, beyond 100 meters depth contour. Cold storage plants would be set up on a large scale. For setting up such plants, GIDC can facilitate in identifying suitable land. Incentives for corporations, municipalities, women's groups and cooperatives to construct hygienic fish markets. The State Government intends to provide incentives for investments, which are directed towards enhancing the manpower skill levels and ensuring that the talent pool available in the state is in line with the industry requirements.
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Gujarat State Tourism Policy, 2003-10 Objectives: To undertake intensive development of tourism in the state and thereby increase employment opportunities. Key initiatives: Special emphasis on event (festival) based tourism.

Identifying and developing tourist destinations. Creating adequate facilities for budget tourists. Strengthening present tourism-related infrastructure with the opening of new centres. Promoting projects in the areas of accommodation, eateries, entertainment, services, etc. Promoting tourism in the areas of religious and archaeology, heritage, wild life, coastal and beach, traditional art and craft, and adventure tourism. Creating entertainment theme parks to be considered as Special Entertainment Zones. Encouraging medical tourism. Provide for avenues to attract tourists who are interested in eco-tourism. Tourism sector has been identified as one with the highest employment potential industry with around 90 jobs created per US$ 2,000 of investment. Possible tourism products such as religious (pilgrimage), archaeology, heritage, wildlife, coastal and beach, traditional art and crafts, culture, corporate, adventure, and highway tourism to be conceived.
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Gujarat State Mineral Policy, 2003 Objectives: To explore the opportunities in the mineral resources of the state. Key initiatives: Invite participation from the private sector for mining and exploration.

Prioritise exploration of lignite to meet the states power demand and the fuel requirement of industries. Creation of a databank by compiling geological and technical details of state and central government agencies in geological survey and mineral exploration. Implement environment assessment norms that would be constantly monitored for major minerals resources on lease. Promote the use of modern technology in mining. To enhance the skills of miners, labourers and technicians working in the mines of minor and major minerals, training programmes for mine-safety improvement, maintenance of ecological equilibrium and prevention of mine wastage to be conducted in country's well-known institutes.
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Gujarat IT Policy, 2006-11 Objectives: Overall growth of IT sector in Gujarat.

Key initiatives: Creating significant employment opportunities by training and developing skilled manpower. Facilitating information outlets at the doorstep of a common man. Making the government-citizen interface more effective, efficient and transparent. For imparting education, the Gujarat Institute of Information Technology is being set up at Gandhinagar. Setting up a high-tech Infocity with facilities of satellite earth station in Gandhinagar and hubs at Ahmedabad and Baroda. Plans to spend 1 per cent of the annual state budget on IT-related activities; to be progressively raised to 3 per cent. State to facilitate granting of SEZ status to IT industry and IT parks subject to the provision of the SEZ Act and rules.
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Gujarat IT Policy, 2006 (continued) Incentives and concessions:

Capital subsidy at a rate of 25 per cent for the new-IT units on total eligible capital investment. IT units would be eligible to a turnover incentive at a rate of 5 per cent of the eligible annual turnover with a ceiling of US$ 100,000. Incidence of sales tax on computer hardware, peripherals, etc., would be reduced. A special connectivity incentive to be given where the Government would subsidise leased-line rental up to 500 km to an extent of 50 per cent of the lease-rentals. Special incentives for mega-IT projects creating employment for more than 1,000 persons for an IT unit and 1,500 persons for a ITeS unit. Financial assistance at the rate of 50 per cent of fixed capital investment in land, buildings and infrastructure facilities to IT park developers up to a maximum of US$ 510 billion. Stamp duty exemption on purchase of land for IT park developers. State Government would set up venture capital fund for development of IT services, IT software and IT products. This fund would seek support from national fund for IT-ventures development as proposed by the National Task Force.
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Gujarat Port Policy, 2005 Objectives: To promote Gujarats share in ports. Key initiatives: The port policy seeks to enhance Gujarats share in the national export-import sector.
It also seeks to decongest existing ports on the western coast through efficient services to support domestic and international trade. Providing port facilities to promote export-oriented and port-based industries. Encouraging shipbuilding, ship-repairing and manufacturing facilities for cranes, dredgers and floating crafts. Promoting coastal shipping for passengers and cargo traffic between various locations within and outside Gujarat. Supporting power plants by offering exclusive facilities for import of fuels. Encouraging private sector investment in minor and intermediate ports as well as new port locations. Providing port facilities to promote export-oriented industries and port-based industries entailing almost 50 per cent of total industrial investment. Development of new port sites. Privatisation of services such as lighterage, dredging, piloting, tug-towing and other essential utilities.
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SEZ Policy of Gujarat, 2002 Objectives: To bring more investment and export oriented units in the state. Salient features: SEZs would be declared as industrial townships (notified area) in the state and they would be managed by a development commissioner.

Power supply can be provided by independent power producers/distributors in the SEZ with permission of SEZ authority. SEZ units will be exempted from electricity duty for period of 10 years from the date of production and rendering of the services. SEZ units are allowed to set up their own captive power plants. The SEZ Authority would establish grid connectivity to ensure uninterrupted power supply in case of power failure. Eighty industries have been exempted from obtaining No Objection Certificate by the Gujarat Pollution Control Board. All environment related clearance application would have to be submitted only to the Development Commissioner of SEZ. SEZ units would be required to file consolidated annual report on several laws relating to labour, wages and compensation to the development commissioner. Units in SEZ would be declared as "Public Utility Services" under the Industrial Disputes Act. Tax incentives: exemption on stamp duty and registration charges on loan agreements, credit deeds, mortgages and transfer of land in SEZ for industrial purpose. Transactions within SEZ would be exempted from all sales taxes of State Government including VAT and purchase tax. Good and services transacted from domestic tariff area to SEZ would be exempted from sales and other state taxes but would be taxed if transacted from SEZ to domestic area. SEZ developer would be granted permission to develop water supply and distribution system for constituent units.
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Gujarat Road Policy Objectives: To facilitate investments in the road sector. Key objectives and initiatives: First state in India to have a law governing build-own-transfer (BOT) transactions.

Provide connectivity to all villages by building all-weather roads to improve quality of life in rural areas. Develop an efficient road system to ensure smooth and uninterrupted flow of goods and passenger traffic. Constantly upgrade technology by deploying superior and quicker construction, and maintenance methods. Induct scientific principles of resource allocation for maintenance and new construction programmes. Set high standards for road safety and the travel comfort of passengers.
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Gujarat Agro Industrial Policy, 2000 Objectives: To make Gujarat the destination of choice for investors and processors, both global and domestic. Key initiatives: Creation of a world class supply-chain Promotion of infrastructure important for agro industry development Close interface between research, industry and farmers in the agri-sector Providing assistance to small-scale agro based units to improve their competitiveness in global markets and increase exports of value-added agri-products. The policy to be implemented by the Gujarat Agro Industries Corporation Limited, the nodal agency to promote and develop agro and food processing industry in Gujarat.
Fiscal Incentives: Tiny, small, medium and large agro industrial units are given 6 per cent back-ended subsidy for five years on the interest on term loan, subject to a ceiling of US$ 200,000.
Agri-infrastructure projects to be given 6 per cent back-ended subsidy for five years on the interest on term loan, subject to a ceiling of US$ 900,000. Individuals/institutions to be reimbursed 50 per cent expenditure of the cost of preparation of a project report for setting up an agro-industrial unit, subject to a ceiling of US$ 10,000. Specific crop-development institutes/centre of excellence to be given 50 per cent of the initial capital investment as assistance, subject to a ceiling of US$ 10,000. Small scale and tiny agro industrial units to be given assistance up to 50 per cent of the cost incurred for obtaining quality certification mark from an institute recognised by the State Government or Central Government, subject to ceiling of US$ 10,000. Private, government or cooperative sector units to be reimbursed up to 50 per cent of the cost of patent registration, subject to a ceiling of US$ 10,000.
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Gujarat Agro Industrial Policy, 2000 (continued)
A subsidy of 25 per cent to be provided on air freight for exports of edible products; 50 per cent subsidy to be provided on the actual cost of sending samples and the cost of getting samples passed for export of edible agro items, subject to ceiling of US$ 1,087. A subsidy of 50 per cent subsidy to be provided on the cost of special research for improvement in quality of agriculture produce, undertaken in research and development centre established by any institute or industrial enterprise, subject to a ceiling of US$ 40,000. The State Government through Gujarat Agro Industries Corporation shall undertake equity participation ranging from 11 per cent to 26 per cent of promoters contribution in select projects to facilitate private sector investments. The State Government to provide government land, including agriculture farms, on long lease basis at concession rates to agro industries and agri-infrastructure projects including centres of excellence. The State Government to create a venture fund for agro Industries in association with financial institutions and banks. Incentives to be given to new units as well as existing units undertaking technology up-gradation, modernization, expansion or diversification. Interest subsidy to be granted towards interest on term loan from nationalised banks and financial institutions recognised by the Reserve Bank of India.
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Power Generation Policy of Gujarat, 2009 Objectives: To develop the state of Gujarat as a power-generation hub. Key initiatives: To have adequate availability of power in the state for agriculture, households, industry and commerce.

To ensure effective and efficient use of conventional fuels by the power-generation industry. To build power-generation capacity to encourage competition for procurement of electricity by state utility/distribution licenses. To encourage environment friendly and efficient power-generation technologies. The State Government to facilitate and assist project developers in identifying suitable locations, obtaining clearances, fuel linkage, port linkage and water supply. The State Government to facilitate the clearances and approvals for connecting the power plant to the grid sub-stations When the developer has arranged its own fuel without recommendation of the State Government, the Government shall have the right to purchase power from the power project, up to 10 per cent of installed capacity. Nominated agency of Government of Gujarat shall have the first right and not obligation for purchase of surplus power of SEZ. This provision shall be applicable to power station located in SEZ area having installed capacity up to 1,000 MW and in case the installed capacity is over 1,000 MW then also this provision shall apply up to 1,000 MW capacity only. When surplus power is available for shorter duration of one year or a lesser period, the nominated agency of Government may purchase such surplus power on short-term basis, on the mutually negotiated prices. When surplus power is available for longer duration of more than one year, the nominated agency shall have the first right and not obligation to purchase power through the competitive bidding process.
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Solar Power Policy of Gujarat, 2009 Objectives: To promote power generation of green and clean power in the state using solar energy. Key initiatives: To put in place appropriate investment climate, that could leverage the clean development mechanism (CDM). Productive use of wastelands, thereby bringing in a socio-economic transformation. Promote R&D and facilitation of technology transfer. Establish core technical competence in professionals of the state to initiate and sustain the use and effective management of new applications.
Incentives and concessions: Solar Power generators (SPGs) installed and commissioned up to March 31, 2014 shall be eligible for incentives.
Electricity generated from the SPGs and used for self consumption or sale to third party or licensees shall be exempted from payment of electricity duty. Exemption from demand cut to the extent of 50 per cent of the installed capacity of SPGs, assigned for captive use purpose. Electricity generated from a solar power project, shall be sold to the distribution licensees in the state at levelised fixed-tariff per unit.
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GUJARAT
April 2010
Contents
Company logos cited in this section are registered trade marks of the respective companies
62
BUSINESS OPPORTUNITIES Gujarat April 2010
Agro and food processing
The agro sector including animal husbandry, contributed 14.8 per cent to Gujarats GSDP in 2006-07. Gujarat has a significant share in the national production of principal crops:

Key Players

Highest production of cotton: 9 million bales in 2008-09 Second-highest production of onion: 2.23 million tonnes in 2006-07 Second-highest production of groundnut: 1.44 million tonnes in 2006-07
Amul Adani food products Godrej Agrovet McCain foods Parle Ramdev Spices Rasna Vadilal Vimal Agro Products
Sources: Area, Production & Productivity of Cotton, Cotton Corporation of India website
In 2007, the states marketing network consisted of 209 market committees, 198 main yards and 203 sub-market yards Gujarat Agro Industries Corporation (GAIC) promotes agricultural activities at the groundlevel and aids the development of agro industries in the state
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Agro and food processing the dairy industry
Gujarats dairy sector consists of 13 district milk producers unions. It has a network of 12,991 milk cooperative societies with 2.5 million members as of 2009. The total milk production in Gujarat was 7.9 million tonnes in 2007-08 The National Dairy Development Board in Anand is involved in promoting, financing and supporting milkdistribution organisations across India. GCMMF, a cooperative dairy giant, sells Amul and Sagar brands of dairy products through 500,000 unorganised retailers and 3,000 distributors. GCMMF registered a turnover of US$ 1.05 billion in 2006-07 to become the first billion-dollar cooperative in India.
Key districts in the dairy sector
Gandhinagar Ahmedabad Anand
Sources: Estimates of milk production, National Dairy Development Board
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Agro and food processing company profiles (1/2)

Amul

The Anand Milk Union Limited (AMUL) was established in 1956 in Anand, Gujarat. A market leader in butter, whole-milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long-life milk. Daily average collection of 8.4 million litres of milk from 13,328 village societies in 2008-09. Manufacturers and exports spices (ground, blended, whole) and pickles. The company is a star-export house certified by the Directorate General of foreign trade (DGFT). Head office at Rajkot and factory at Metoda (near Rajkot). GAVL, part of the Godrej Group of Industries, is a diversified agribusiness company with interests in animal feed, oil palm plantations, agrochemicals and poultry. GAVL has 45 manufacturing facilities across India, a network of 10,000 rural distributors/dealers and over 1,900 employees. GAVL covers 35,000 hectares of palm plantations in Tamil Nadu, Andhra Pradesh, Goa, Karnataka, Orissa, Gujarat and Mizoram. Has a plant at Valia in Gujarat. Privately-owned, multinational leader in the frozen food industry with a revenue of US$ 6 billion in 2004. World's largest producer of french fries and potato specialties; food products include appetizers, pizzas, vegetables, desserts and other frozen foods Over 55 production facilities spread across six continents, supported by over 20,000 employees. Aims to promote contract farming and buy potatoes from over 100 farmers, spread over Anand, Borsad, Palanpur and Deesa in Gujarat 2,000 acres of drip irrigation, introduced by McCain in Gujarat for potato farming. Manufacturing facility at Mehsana
Adani Food Products
Godrej Agrovet (GAVL)
McCain Foods
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Agro and food processing company profiles (2/2)

Parle
India's largest manufacturer of biscuits, confectionary and fruit juices, for almost 80 years. Revenue of US$ 0.8 million in 2008-09. Brands include Parle-G, Krackjack, Monaco, Hide and Seek, Poppins, Melody and Mango Bite. Confectionary factory at Surendranagar, franchisee (Bailey) factory at Ahmedabad. Established in 1965 at Ahmedabad. Products include powder spices, whole spices and snacks. A government-recognised export house with an international network in 10 countries. Cleaning and processing capacity of more than 60,000 kg per day. Started in 1984. Had 93 per cent market-share in Indian soft-drink concentrate market in 2009. Provides 82 per cent of in-house consumption of soft drink market. Wide range of products in processed-foods category. Based in Ahmedabad. Established in 1907 at Ahmedabad. Manufactures ice-creams and frozen desserts. Exports processed products. Revenue of US$ 33 million in 2008-09. Two manufacturing plants at Gujarat (in Ahmedabad and at Pundhra in Gandhinagar district). Set up in 1975 at Bardoli in Gujarat. The company manufactures and exports over 80 different food products ranging from canned vegetables, fruit pulp and slices, pickles, chutney, papads and ready-to-eat foods. Recently entered processed, cleaned and packed pulses, rice and fruit juices market.
Ramdev Spices
Rasna
Vadilal
Vimal Agro Products Private Limited
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Textiles and apparel (1/2)
In 2008-09, Gujarat was the highest exporter of cotton in India with 60 per cent exports. It was also the highest contributor of man-made fibre (31 per cent) and man-made filament yarn (38 per cent) in the country. The state contributed 12 per cent to national textile exports in 2008-09.
Key Players

Alok Industries Arvind Mills Ashima Group Chiripal Group Digjam Indian Rayon Dinesh Mills Garden Silk Mills Limited Ginni Filaments Gujarat Ambuja Exports Limited Jindal Worldwide Limited Mafatlal Industries Limited Raymond Reliance Industries Limited Vardhman Group
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Textiles and apparel (2/2)
Over 40 per cent of the countrys art-silk fabric is produced in Surat. Gujarat is the largest producer of denim in India (65 to 70 per cent) and the third-largest in the world. Textiles account for 21 per cent of total employment in the state. In 2008-09, the state contributed 33 per cent of mill-made fabric and 25 per cent power-loom fabric to the total fabric produced in the country.
Area Ahmedabad Surat
Textile clusters Cotton and blended fabric, denim, made-ups, ladies dresses, textile machinery and spare parts. Art-silk fabric, synthetic textiles, jari manufacturing, embroidery, textile machinery and spare parts. Modern power looms, synthetic suiting and shirting. Hand printing and processing units. Cotton ginning Textile handicrafts
Umargam Jetpur Manavadar Kutch
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Textiles and apparel industry company profiles (1/4)

Alok Industries

Fully integrated textile company established in 1986. Over the years, the company has expanded into weaving, knitting and processing of home textiles and garments. Recently entered the domestic retail segment through a wholly-owned subsidiary, Alok Retail India Limited. Manufacturing units for processing and manufacturing made-ups and terry towel at Valsad. One of the top-three producers of denim in the world and largest producer in Asia. Product line includes fabrics (denims, shirtings, khakis and knitwear) and garments. Asias first fabric-manufacturing unit to receive an ISO-14001certification. Has the denim and voiles divisions at Ahmedabad; shirting, khakhi and knits divisions at Gandhinagar. 100 per cent cotton-fabric manufacturers and a vertically-integrated group with a turnover of over US$ 135 million per annum. Registered office at Ahmedabad. Exports fabric to over 45 countries, markets to over 150 Indian garment exporters. Established in 1972. Business areas include textiles, petrochemicals, chemicals and auxiliaries, education and infrastructure. Corporate office at Ahmedabad, textile and petrochemical units at Ahmedabad. Part of the S.K. Birla Group, the company was established in Jamnagar, Gujarat in 1949. The company manufactures fabrics for suiting and casual wear. It has restructured its business portfolios to focus on textile manufacturing and marketing of fabrics and ready-to-wear clothing under its own brands.
Arvind Mills
Ashima Group
Chiripal Group
Digjam
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Dinesh Mills

Composite textile mill manufacturing menswear, womens wear and kids wear. Manufacturing units in Gujarat at Vadodara (Baroda) and Ankleshwar. Exporting to countries such as the US, Canada, Australia, Europe, Middle-East and Far-East. The company is a part of the Garden Vareli Group. Incorporated in 1979. Revenue of over US$ 350 million in 2008-09. Produces polyester chips/melt, polyster filament yarn and fabric. Two plants at Jolwa and Vareli in Surat. Leading integrated manufacturer of cotton yarn, processed knit fabrics and non woven spun-lace fabric. Established in 1990. Gujarat unit at Panoli industrial estate with a capacity of 12,000 MTPA.
Garden Silk Mills Limited
Ginni Filaments
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Gujarat Ambuja Exports Limited

The company is in the business of exporting cotton yarn to over 40 countries for last 12 years. The company also operates in other segments such as solvent extraction, edible oil, vanaspati ghee, maize processing and flour mills. Corporate office at Ahmedabad. Cotton yarn spinning mill at Himatnagar in Gujarat. The company is setting up a green field project costing US$ 23 million with 30,000 spindles of cotton adjacent to the Himatnagar mill. Established in 1976. Jindal began fabric-trading and steadily expanded into weaving, processing and home textiles. The group is a government-recognized export house. Corporate office and plant at Ahmedabad. Established in 1905. Main businesses include textiles, garments, apparel, rubber chemicals, specialty chemicals and finance. MIL produces a range of products in 100 per cent cotton, polyester/cotton, polyester/viscose and polyester wool blends. The total capacity of the two mills, located at Navsari (near Surat) and Nadiad (near Ahmedabad) is 25 million meters per annum (85,000 meters per day).
Jindal Worldwide Limited
Mafatlal Industries Limited (MIL)
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Indian Rayon

Part of the Aditya Birla group of companies. Indian Rayon, the viscose filament yarn unit of Aditya Birla Nuvo, is a major player in the Indian viscose filament yarn business. The unit has a 30 per cent domestic-market share, making it the second largest producer of viscose filament yarn in India. Plant located at Veraval (Gujarat). With over 60 per cent market share in India, Raymond is one of the largest integrated manufacturers of worsted fabric in the world. The group is into textiles, engineering and aviation. Raymond Apparel Limited is a 100 per cent subsidiary of Raymond Limited. The plant at Vapi in Gujarat has production of 14 million metres per annum. Indias largest private sector company. Features on the Fortune Global 500 list of Worlds Largest Corporations. Product lines include synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals and petrochemicals. Textile manufacturing unit at Naroda (Ahmedabad). Flagship brand Vimal. Annual revenue of over US$ 29 billion in 2008-09. New product initiatives include fresca anti-microbial and anti-bacterial work-wear apparel fabrics, home furnishing, auto textiles, silk-amino suiting fabrics, fire-retardant fabrics and insect repellent nets. Established in 1965, the company is a leading textile conglomerate in India with turnover of US$ 700 million in 2008-09. Spanning over 24 manufacturing facilities in five states across India, the groups business portfolio includes yarn, greige and processed fabric, sewing thread, acrylic fibre and alloy steel. Fibre manufacturing unit of Vardhman Acrylic Limited is at Jhagaria (Gujarat) with a production capacity of 18,000 MTPA.
Raymond
Reliance Industries Limited
Vardhman Group
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Chemicals and petrochemicals
Gujarat contributed about 51 per cent to the national production of chemicals in 2006-07.
Key Players

It is the highest contributor to the total national production of petrochemical products. Gujarats contribution in the national production of the following is:

Soda ash: about 100 per cent Salt: 85 per cent Polymers: 56 per cent Ethylene: 50 per cent
Asian Paints BASF DCW Tata Chemicals Sintex Industries Gujarat Alkalies and Chemicals Gujarat Heavy Chemicals Nirma Chemicals Excel Industries Reliance Industries United Phosphorous Meghmani Organics Gujarat State Fertilisers and Chemicals Gujarat Narmada Valley Fertilisers Company
In 2006, the state had 3,720 factories manufacturing chemical products and employing more than 160,000 persons. The State Government is developing the petroleum, chemicals and petrochemicals integrated region (PCPIR) at Dahej.
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Source: Chemicals & Petrochemicals, sector profile 200809, Government of Gujarat; Doing business in Gujarat
Chemicals and petrochemicals industry company profiles (1/3)

Asian Paints
It is Indias largest paint company and ranks among top ten decorative-coatings companies in the world. Had turnover of US$ 1.2 billion in 2008-09. Asian Paints along with its subsidiaries has operations in 18 countries across the world and 26 paint manufacturing facilities. Manufacturing facility at Ankleshwar in Gujarat. Established in 1943. The BASF group in India consists of BASF India Limited, BASF Coatings, BASF Styrenics Limited, and BASF Polyurethenes India Limited. BASF is engaged in the production of chemicals, tanning agents and coatings. Production facility of BASF Styrenics Limited, is at Dahej in Gujarat. Diversified manufacturer of basic chemicals such as caustic soda, chorine-based products, soda ash, polyvinyl chloride resin, iron oxide and bromine. Had a turnover of US$ 200 million in 2008-09. Companys first plant was established in 1925 at Dharangadhra (Surendranagar in Gujarat). TCL is a global company with interests in chemicals, crop nutrition and consumer products. It is the world's second largest producer of soda-ash. Established in 1939 at Mithapur in Gujarat, TCL is a part of the Tata group. The plant has an installed capacity of 875,000 tonnes per annum; about 34 per cent of the country's capacity. The plant is one of the largest producers of synthetic soda ash in the world and has a five-star rating from the British Safety Council. Established in 1931. One of the leading providers of plastics and niche textile-related products in India. The group has 36 manufacturing plants in India and overseas, spread over nine countries and four continents. Has its head office at Kalol in North Gujarat.
BASF
DCW
Tata Chemicals Limited (TCL)
Sintex Industries Limited
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Gujarat Alkalies and Chemicals Limited
GACL is the single largest producer of Caustic Soda in India, with a production capacity of 1087 tonnes per day (TPD). Other products include caustic potash, sodium, hydrogen peroxide, phosphoric acid and chloromethane. Spread over two complexes at Vadodara (Baroda) and Dahej. Revenue of US$ 300 million in 2008-09. GHCL India was commissioned in 1988. The company manufactures soda ash. The plant has a production capacity of 850,000 million tonnes per annum (MTPA) and is located along the coastline of Saurashtra Region, within Gujarat. Had a turnover of US$ 285 million in 2008-09. Part of the Nirma Group of companies. Products of the company include detergents, soaps, chemicals and allied products. Chemical division manufactures chemicals such as sulphuric acid, linear alkyl benzene, alfa olefin solphonate, glycerin, single super phosphate and sodium silicate. Plant located at Alindra near Baroda. Established in 1941, the company manufactures agro-chemicals, water treatment chemicals and polymer additives. Plants in Gujarat at Piplaj and Ahmedabad. Turnover of US$ 57 million in 2008-09. Indias largest private sector company and features on the Fortune Global 500 list of Worlds Largest Corporations. Product lines include synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals and petrochemicals. Petrochemicals division manufactures polymers, polyesters, polyester intermediaries and other petrochemicals. Manufacturing facilities at Hazira, Vadodara and Gandhar in Gujarat.
Gujarat Heavy Chemicals Limited (GHCL) Nirma Chemicals
Excel Industries
Reliance Industries Limited
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United Phosphorous Limited (UPL)
Incorporated in 1969, UPL is a global generic-crop protection, chemicals and seeds company. UPL has 21 manufacturing sites (nine in India, four in France, two in Spain, one each in UK, Vietnam, Argentina ,Netherlands, Italy and China). Four manufacturing facilities in Gujarat, at Jhagadia, Halol, Ankleshwar and Vapi. Manufacturers of pigments and pesticides. More than 80 per cent of the companys pigment products and over 50 per cent of pesticides products are exported the world over. Had revenue of US$ 130 million in 2008-09. Company has four production facilities at Vatva, Chharodi, Panoli and Ankleshwar in Gujarat. Established in 1962. Fertiliser plant at Fertilisernagar (Vadodara), fibre unit at Kosamba, di-ammonia phosphate (DAP) fertiliser unit at Sikka and polymer unit at Nandeseri. Had revenue of US$ 1.3 billion in 2008-09. GNFC is a joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizer Company Limited (GSFC). Set up in Bharuch, Gujarat in 1976. Manufactures fertilisers and chemicals.
Meghmani Organics Limited
Gujarat State Fertilisers and Chemicals Limited
Gujarat Narmada Valley Fertilisers Company Limited (GNFC)
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Engineering and automotive (1/3)
The states engineering and automotive sectors contribute 8 per cent to Indias total industrial production and over 9 per cent to the national engineering output. The states engineering and automotive sectors have an average annual growth rate of 15 per cent. The sector comprises more than 600 medium and large sector units, and over 75,000 small-scale units. The state has 30 engineering product clusters.
Share of Gujarat in national engineering sector output

10.8% 8.3% 6.2% 3.7% 11.1%
Autombile
Electricals
Metallurgical Fabrication
Machinery
Share (%) of engineering sector in Gujarats industry

Factory (nos.) Employment Fixed capital investment Value of output Value added
Source: Engineering & Auto, sector profile 200809, Government of Gujarat
29.03 23.58 7.15 10.1 12.72
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Small-scale industry is a significant contributor to the national production of brass parts, foundry, forging and machine tools, oil engines and electric motors, submersible pumps and industrial valves and bearings. The brass parts cluster at Jamnagar has over 5,000 small units and meets almost the entire requirement for brass parts in India. General Motors has set up its automotive manufacturing facilities in Gujarat, providing a boost to its auto ancillary industry.
Key Players

ABB Apollo Tyres Bosch India Bombardier L&T Videocon Panasonic Munjal Auto Alstom Linde Engineering Steelco Gujarat Birla Copper Atul Auto Tata Motors Ingersoll Rand Hitachi General Motors Matsushita
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Key engineering clusters
Foundry and forgings Steel pipes and tubes Steel re-rolled products Brass parts Fabricated metal products Steel and aluminium furniture Electric motors Power driven pumps Textile machinery parts Chemical machinery parts Food processing machinery Machine tools Diesel engine and parts Ball and roller bearings Automobile and auto parts
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Engineering and automotive industry company profiles (1/4)

ABB

Incorporated in 1949. The company manufactures cable sand cable accessories, control systems, power products, semiconductors, reactors, drives, generator circuit breakers and insulation components. Caters to over 20 industry groups. Manufacturing facility, training and operations centre located in Gujarat at Vadodara (Baroda); branch office at Ahmedabad. Had revenue of US$ 35 billion in the year ended December 31, 2008. The company is a leading tyre manufacturer in India. It caters to passenger cars, sports utility vehicles, commercial vehicles, agriculture and off-the-road vehicles. The company has a plant at Limda in Gujarat manufacturing 400,000 tyres per month. This plant is the companys flagship and the largest . A manufacturing facility for extra-large-off-the-road tyres was inaugurated in November 2009 at the Limda plant. Company had a revenue of US$ 500 million in 2009-10. The Bosch Group is one of the worlds biggest private industrial corporations, headquartered in Germany. In India, Bosch is a leading supplier of technology and services; operates six companies. Products and services include automotive technology, industrial technology, consumer goods and building technology and engineering and IT services. Bosch set up its manufacturing operations in 1953 in India, and has grown over the years to 14 manufacturing sites and three development centres. Bosch Rexroth India Limited is headquartered in Ahmedabad. Present in India since 35 years and headquartered in Canada. Business activities include rail transportation equipment, systems and services, regional and business aircraft; leading supplier of motor vehicles worldwide. Among the first private companies to build rail vehicles in India. Production facility located in Vadodara (Baroda).
Apollo Tyres
Bosch India
Bombardier Transportation India
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Larsen & Toubro (L&T)

L&T is a technology, IT, engineering, construction and manufacturing company. The Engineering Construction and Contracts (ECC) division of L&T is Indias largest construction organisation in the country. Has a regional office at Ahmedabad. The company is setting up power and manufacturing plants at Hazira and Vadodara, to be complete by 2011-12. Has an investment of US$ 1 billion and expected to provide employment to 5,000 persons. The Videocon group is a US$ 2.5 billion global conglomerate. The company manufactures consumer electronics, home appliances and compressors in India. One of its units is located in Bharuch. Welspun is present in over 50 countries. Business activities include home textiles, saw-pipes and steel, specialty texturised polyester yarn, bathrobes and retail. Welspun-Rohren is among the largest saw pipe manufacturers in Asia. In 2009, Welspun India Limited demerged into two companies; Welspun Global Brands (marketing, sales, distribution) and Welspun Investments Limited. Two manufacturing plants for home textiles are located at Anjar (Kutch district) and Vapi (Valsad district). Company incorporated in 1972 in Vadodara. It is in the business of manufacturing and selling batteries, battery appliances and components. Has two manufacturing facilities in India: one at Vadodara in Gujarat and another in Madhya Pradesh. MAIL is an auto component manufacturing company producing exhaust systems, wheel rims and automotive assemblies. MAIL is part of the Hero Group of companies and was established in 1987. The company has three manufacturing, of which one is at Vadodara.
Videocon Limited
Welspun India Limited
Panasonic Energy India Co Limited Munjal Auto India Limited (MAIL)
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Alstom

The company's activities in India include power generation, power service and rail transport. Headquartered in France and with a presence in 70 countries, employing 80,000 people worldwide. Alstom Projects India Limited is headquartered in New Delhi and has facilities in Durgapur (utility boilers manufacturing facility), Coimbatore (transport manufacturing facility), Bengaluru (transport sector software development centre), Kolkata (power service and environmental control system), Shahabad (boiler and foundry products manufacturing facility) and Vadodara (hydro business manufacturing facility). Contract with Gujarat State Electricity Corporation Limited (GSECL) for construction of the first Alstom GT26-based combined cycle power plant in India, as an extension of the existing power plant at Utran (Surat). Also has supply contracts in the Northeast Indian power projects. Leading industrial gas and engineering company with over 53,000 employees working in 70 countries. Constituent companies are Linde Gas and Linde Engineering. Linde designs and builds turnkey process plants for industrial users and applications; Linde Engineering has operations in Vadodara (Baroda). Has been manufacturing cold-rolled steel products since 1994. Plant at Bharuch district in Gujarat with a capacity of 230,000 million tonnes per annum (MTPA). Branch office located in Vadodara (Baroda). Birla Copper is a unit of Hindalco Industries. It has set up a mega greenfield copper-smelting and refining complex at Dahej in the Bharuch district at an investment of US$ 500 million. Hindalco Industries Limited, is a flagship company of Aditya Birla group. The company is a Gujarat-based leading manufacturer of three-wheeled commercial vehicles. The company is part of the US$ 30 million Atul Group of companies. Head office at Rajkot and factory at Shapar near Rajkot.
Linde Engineering
Steelco Gujarat
Birla Copper
Atul Auto Limited
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Tata Motors Limited
Established in 1945, Tata Motors Limited is India's largest automobile company, with consolidated revenue of US$ 14 billion in 2008-09. Tata Motors is the first company from India's engineering sector to be listed on the New York Stock Exchange. Products include passenger cars, utility vehicles, trucks, commercial passenger vehicles and defence vehicles. Mother plant of Nano is located at Sanand in Gujarat. Ingersoll Rand is a US$ 13 billion global diversified industrial company and is present in India since 1921. The company focuses on the major global markets of climate control, industrial technology, infrastructure development, safety and security. The company has a ISO 9001 certified plant at Naroda, near Ahmedabad. This facility caters to a major chunk of the global demand for air-cooled reciprocating air compressors. A multinational corporation specialising in high-technology and services founded in 1910 in Japan. Hitachi Home and Life (India) is the Indian subsidiary, founded in 1984 for manufacturing consumer durables. In Gujarat, Hitachi has two air conditioner manufacturing plants at Kadi. It is the largest air conditioner manufacturing facility in India. Founded in 1908, GM is among the worlds largest automobile makers. Headquartered in Detroit (USA), GM manufactures cars and trucks in 32 countries and has sales in 200 countries. It has been an industry sales leader for 78 years and employs 324,000 people around the world. General Motors India, incorporated in 1994, became a fully-owned subsidiary of GM in 1999. Has a 45,000 sq m plant at Halol (Panchmahal) in Gujarat and produces brands such as the Chevrolet (Optra and Tavera) and Opel (Corsa and Sail). It is the largest Japanese electronics producer. Products include audiovisual and information/ communication equipment and home appliances. Among the first companies to establish a business unit in Gujarat in 1972 through a joint venture with the Indian company, Lakhanpal. Manufacturing unit located at Vadodara where it manufactures dry cell batteries.
Ingersoll Rand
Hitachi
General Motors
Matsushita
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Gems and jewellery
Gujarat accounts for 72 per cent of the worlds share of processed diamonds and 80 per cent of total diamonds processed in India. Contributes 90 per cent of total diamonds processed in India in 10,000 units in Surat. Eight out of 10 diamonds in the world are polished in Surat. The state has the highest labour productivity in the jewellery sector in India. It is also internationally renowned for the production of unique hand-made silver ornaments (85 per cent of total silver jewellery production of India). Renowned institutions such as the Indian Diamond Institute, Gujarat Hira Bourse, and the Gems and Jewellery Export Promotion Council provide skilled manpower for the industry.
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Oil and gas
Gujarat ranks first in the production of crude oil (onshore: 55.10 per cent) and natural gas (onshore: 32.3 per cent) in India. The state has the highest number of oil and gas fields, both onshore and offshore, in India (31.3 per cent). Nearly 36.6 per cent of Indias installed refining capacity is in the state of Gujarat. Oil and gas reserves are located at Ankleshwar, Mehsana, Tapti High, Hazira, Bharuch, Gandhar, Dahej, Jambusar, Palej and Kalol. Isolated gas fields are located around Ahmedabad. Gujarat has a 2,200 km state-wide integrated gas grid. It also has two LNG terminals at Hazira and Dahej. Two more terminals are proposed to be set up at Pipavav and Mundra.
Location Jamnagar
Oil and gas companies Reliance Industries refinery: thirdlargest in the world; Essar Refinery Petronet LNGs re-gasification terminal Shell and Totals LNG terminal Indian Oil Corporations refinery ONGCs gas processing complex Key Players
Dahej Hazira
Vadodara Gandhar
Adani Group British Gas Cairn India Essar Oil GAIL (India) Limited IOCL ONGC Reliance Industries Shell Gujarat Gas Company Limited Petronet LNG Limited Hazira LNG and Port Companies
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Oil and gas industry company profiles (1/4)

Adani Group

Established in 1988, Adani is among the large trading houses in India. It is a leading trader in coal, wheat, castor oil, petroleum, business process outsourcing (BPO), power trading, iron-ore and pulses. It is involved in development of the Mundra port, the second private port in Gujarat Adani has developed a natural gas distribution network. Has also established Indias largest edible oil refinery in the state. The company operates the largest producing oil fields in the Indian private sector. Cairn India holds material exploration and production positions in 13 blocks across India along with new exploration rights elsewhere in India and Sri Lanka. Cairn has a 40 per cent share in the Cambay oil field; ONGC holds 50 per cent and Tata Petrodyne 10 per cent. It is building a 670 km long, heated and insulated crude oil pipeline from the Mangala Processing Terminal in Rajasthan to the Gujarat coast. When complete, the pipeline will give access to more than 75 per cent of Indias refining capacity. The first phase is targeted for completion by the mid of 2010. Part of the Essar group, a multinational conglomerate in sectors like steel, oil & power, communications, shipping ports & logistics, construction and minerals with a turnover of US$ 15 million. Essar oils assets include developmental rights in proven exploration blocks, a 10.5 MTPA refinery in Vadinar, Gujarat and over 1,300 branded oil retail outlets in India. The company plans to expand its refinery capacity to 36 MTPA and open 3,000 outlets countrywide. The company has an exploration and production block in Mehsana, Gujarat
Cairn India
Essar Oil
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GAIL (India) Limited
GAIL is India's flagship natural gas company, integrating all aspects of the natural gas value-chain of exploration, production, processing, transmission, distribution and marketing and related services. Had a turnover of US$ 5 billion in 2008-09. GAIL supplies gas to Gujarat Gas Company Limited. GAIL has an office in Ahmedabad and a CNG refuelling station in Vadodara. IOCL is India's largest integrated oil refining and marketing company by sales, with a turnover of US$ 62 billion in 2008-09. It is the 18th largest petroleum company in the world. It owns and operates 10 of Indias 19 refineries; as of 2008-09, the company had a refining capacity of 60.2 MTPA (1.3 million barrels per day). The refinery at Koyali in Gujarat is IOCLs largest with a capacity is 12.5 million metric tonnes per annum (MMTPA). ONGC is Indias leading exploration and production company for oil and gas. It has 240 onshore production installations, 70 drilling rigs and 15,800 km pipeline network. ONGC has a plant at Hazira; assets in Mehsana, Ahmedabad and Ankleshwar; the Institute of Reservoir Studies (IRS) at Ahmedabad ; and regional office at Baroda.
Indian Oil Corporation Limited (IOCL)
ONGC
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Reliance Industries Limited (RIL)
RIL is Indias largest private sector company and features on the Fortune Global 500 list of Worlds Largest Corporations. It has annual revenue of over US$ 34 billion as of March 31, 2008. It has three manufacturing facilities in Gujarat at Naroda, Jamnagar and Hazira. The Jamnagar refinery is the largest grass-root refinery in the world. Product lines include synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals , petrochemicals and retail outlets for petro-fuel products. Shell is among the global leaders in oil, gas and petrochemicals sector, with interests in bio-fuels, wind, solar power and hydrogen. Operates in over 100 countries, employing over 102,000 people worldwide. It is a large and diversified international investor in Indias energy sector. It is the only global major to operate petro-fuel retail outlets in India. The Hazira LNG Terminal and port project is Shells largest venture in India.
Shell
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Gujarat Gas Company Limited (GGCL)
Established in 1980, GGCL is Indias largest private sector player in the natural gas transmission and distribution business. The corporate office is in Ahmedabad and its area of operations is spread across various districts of Gujarat such as Surat, Bharuch and Valsad. The company has been part of the British Gas group since 1997. BG group has a 65.12 per cent controlling stake in GGCL. Formed as a joint venture by the Government of India to import liquefied natural gas (LNG) and set up LNG terminals in the country, Petronet LNG is a consortium of India's leading oil and natural gas industry players. The companys promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL). Petronet has set up its first LNG terminal at Dahej in Gujarat, with a capacity of 5 MMTPA, and is in the process of setting up another terminal at Kochi in Kerala, with a capacity of 2.5 MMTPA. Shell Gas B.V holds 74 per cent of the equity in the Hazira companies, while Total Gaz Electricit France holds 26 per cent. The Hazira LNG terminal has been established in Hazira (Surat district) with an investment of US$ 650 million. The capacity is 5 MTPA; initial throughput capacity of 2.5 MTPA.
Petronet LNG Limited
Hazira LNG and Port Companies
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Pharmaceuticals and biotechnology (1/2)
Gujarat accounted for 45 per cent of the national pharmaceutical production in 2006-07 and 22 per cent of exports. The state accounts for 90 per cent of intravenous sets manufactured in the country. It is home to more than 902 allopathic manufacturing units and 2,122 contract manufacturing units. It has the largest number of clinical research organisations in India and over 100 companies with WHO-compliant manufacturing units. Gujarat has a considerable presence in homoeopathic medicine with 7,500 practitioners, 216 government dispensaries and 15 colleges. A pharma special economic zone (PhaEZ) is being established by Cadilla pharma near Ahmedabad with about 30 units and an investment of US$ 650 million.
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Ahmedabad cluster Gandhinagar Surendranagar Ahmedabad Baroda cluster
Rajkot Junagadh Bharuch and Vapi/Valsad cluster Surat Ankleshwar cluster
Manufacturing Academic institution R&D organisation
Pharmaceuticals and biotechnology (2/2)

Location Ahmedabad-Surendranagar Jamnagar-Dwarka-Porbandhar Vadodara-Anand-Nadiad Vapi-Surat-Bharuch-Ankleshwar Biotech zones (Proposed) Biopharma zone Marine Biotech park Food and food processing for animal biotechnology Biochemical engineering for industrial biotechnology
Key Players

Junagadh-Bhavnagar-BanaskanthaAgri biotechnology Mehsana
Location Vadodara Anand Jamnagar/Bhavnagar Gandhinagar/Mehsana Vadodara
Biotech zones (Proposed) Industrial Park Food Biotechnology park Marine Biotechnology park Agri Biotechnology park Industrial Park
Sun Pharma Bayer Cropscience Cadilla Pharmaceuticals Concord Biotech Indus Biotheraupatics Novartis-Chiron Quintles Span Diagnostics Sterling Gelatin India Torrent Gujarat Biotech Limited Zydus Cadilla Aarti Drugs
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Pharmaceuticals and biotechnology company profiles (1/4)

Sun Pharma
Sun Pharma was established in 1983. It manufactures active pharmaceutical ingredients (APIs) and specialty pharmaceuticals. The company has 17 manufacturing plants in three continents. Sun Pharmaceutical Advanced Research Centre (SPAC) is situated in Vadodara (Baroda). Manufacturing plants in Gujarat are located at Vapi, Halol, Ankleshwar, Ahmednagar and Vadodara. Bayer is a global enterprise with core competencies in the fields of healthcare, nutrition and hightech materials. In India, Bayer operates five companies including Bayer Cropscience, which offers a range of products and service back-up for modern agriculture and non-agricultural applications. The company has three business groups: crop protection, environmental science and bio-science. It has two factories in Gujarat, at Ankleshwar and Himatnagar.
Bayer Cropscience
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Cadila Pharmaceuticals

Cadilla is headquartered at Ahmedabad. It has been in operation for over five decades. The company has been developing and manufacturing pharmaceutical products, which it sells and distributes over 50 countries around the world. Has a manufacturing plant at Dholka (Ahmedabad), chemical strategic business unit at Ankleshwar and tissue culture lab at Hirapur (Ahmedabad). Casil Health Products Limited, a Cadila Group company, has a factory at Mehsana. Cadila plans to set up around seven to eight units in the coming Pharma SEZ near Ahmedabad over the next six years, with an estimated investment of around US$ 150 million. Concord Biotech is a biotechnology company. It was established in 2000. The existing portfolio of products includes APIs in the immuno-suppresant, antibiotic, hypo-lipemic and enzyme segments. It has a manufacturing facility at Dholka in Ahmedabad . It is spread over 28 acres. Also, the corporate and head offices are situated in Ahmedabad.
Concord Biotech Limited
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Indus Biotherapeutics (India)
Indus is a full-service biopharmaceutical contract research organisation established in 2000 in Ahmedabad. It is a wholly-owned division of Intas Pharmaceuticals and operates as a contract research organisation for biotech and drug delivery in India. Novartis India, incorporated in 1947, is the Indian subsidiary of the Switzerland-based Novartis AG. The company finds its origin from three separate entities namely Geigy, Ciba, and Sandoz. Geigy was founded in 1758; Ciba was founded around 1860 and Sandoz was founded in 1886. Chiron Behring Vaccines is a 51:49 joint venture between Novartis and Aventis Pharma. The Chiron plant is at Ankleshwar. Quintles is a fully integrated biotech and pharmaceutical services provider offering clinical, commercial, consulting and capital solutions. Key services in India include biostatistics, data management, clinical monitoring, central laboratory services, electrocardiogram monitoring services, project management and regulatory services. Quintles India, the Indian subsidiary, has four offices in India. The research laboratory of the company is located at Ahmedabad. Span is a diagnostic company. Products include diagnostic reagents and kits, instruments, and industrial & research products. Corporate office is located at Surat ; plant located at Sachin near Surat. Sterling Gelatin India was set up in 1995 under a collaborative agreement between Sterling Gelatin and Croda Colloids, a global player in gelatine technology. The company is part of the Sandesara group of companies. Has manufacturing facility at Vadodara.
Novartis Chiron
Quintles
Span Diagnostics
Sterling Gelatin India
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Torrent Gujarat Biotech Limited (TGBL) Zydus Cadila
Incorporated in 1991,TGBL has become the largest new-generation producer of Penicillin-G, meeting about 18 per cent of the country's Penicillin needs. It is one of the few companies in the world with an integrated technology to manufacture Penicillin-G. The companys corporate office is located at Ahmedabad; has office and plant in Vadodara. Zydus Cadila is a leading pharmaceuticals company with sales of US$ 629 million in 2008-09. Product line includes formulations, APIs, diagnostics, health- and diet-foods, skin care and animal healthcare products. The company exports formulations and APIs to over 43 countries. Focus areas for exports include cardiovascular, gastrointestinal and pain management. Production units are located in Ahmedabad, Vadodara and Ankleshwar for manufacturing tablets, injectibles, capsules, liquids and APIs. Part of the Aarti Group of Companies. Incorporated in 1984. Started commercial production in GIDC Industrial Estate, Valsad. Had turnover of US$ 83 million in 2008-09. Products include APIs, steroids, pharma intermediates and specialty chemicals. Has a strong presence in the anti-diarrhea and anti-inflammatory therapeutic groups. Factory is located at Sarigam in Gujarat.
Aarti Drugs Limited (ADL)
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Shipbuilding industry
There are several shipyards present in Gujarat such as ABG Shipyard, Alcock Ashdown and the Vipul Shipyard. The infrastructure available for development of the shipbuilding industry includes:
Mundra
Shipping industry
Availability of raw materials such as ship building plates and engines Stillness of water and deep draft Proximity to ancillary industries Sufficient anchorage space
Okha
Bhavnagar

Pipavav Jafrabad
Dahej
New shipyards are being established in Pipavav and Hazira. They will be accommodated in a cluster of shipyards called Marine Shipbuilding Parks that will have common infrastructure and ancillary facilities. A mega marine shipyard is proposed to be built at Dahej and in the Gulf of Kutch.
Ship building Marine ship building parks (probable stretches) Ship recycling Bunkering facility
Sources: Gujarat Maritime Board data and industry sources
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Tourism
The state has a rich architectural and cultural heritage owing to its historical parentage of the of Indus Valley Civilisation sites such as Lothal and Harappa. There are many forests and natural ecosystems, heritage monuments, beaches and coastal sites, gardens, lakes, archaeological and architectural sites in Gujarat. Eight tourism hubs have been created for the convenience of tourists visiting Gujarat. They are in Ahmedabad-metro, Ahmedabad (North Gujarat); Surat (South Gujarat),Vadodara (Central Gujarat), Rajkot, Junagadh and Jamnagar (Saurashtra) and Bhuj (Kutch). The year 2006, was celebrated as Tourism Year in Gujarat to promote it as a key tourist destination of India. Some of the initiatives undertaken by the Government to promote tourism include the following: Development plan for six tourist destinations by the Pilgrimage Development Board of Gujarat. Constitution of the Tourism Promotion Council. Reduction of entertainment tax from 50 to 25 per cent from 2006 onwards. The state tourism budget has been increased from US$ 21 million in 2008-09 to US$ 35 million in 200910. In 2007-08, Gujarat received 17 million tourists including 900,000 foreign tourists.
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Major projects being implemented

Name of the project Vadinar refinery oil project Expansion Mundra ultra-mega power project Coal-based power (Mundra) project - Phase IV Koyali refinery project Modernisation Surat lignite power project - Phase II Integrated textile park (Choryasir) Integrated steel (Kachchh) project Sugen power transmission line project
Source: projectstoday.com
Promoter Essar Oil Limited Coastal Gujarat Power Limited Adani Power Private Limited Indian Oil Corporation Limited Gujarat Industries Power Co Limited RJD Integrated Textile Park Limited Electrotherm India Limited Torrent Power Transmission Private Limited
Cost (US$ million) 5,217.4 3,695.7
Industry Petroleum [Refinery] Coal/lignitebased power Coal/lignitebased power Petroleum [Refinery] Coal/lignitebased power Other parks Primary steel Power distribution
Project ownership Essar (Ruia) group Tata group
1,889.1 1,278.7 281.5 113.2 113.0 65.2
Adani group Central Government State Government Private (Indian) Private (Indian) Torrent group
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Key projects being planned

Name of the project Petrochemical complex (Dahej) Coal-based power (Bhogat) project - Phase I Nuclear power (Mithivirdi) project - Phase I SEZ (Kandla Port) Township (Godhavi-Ghuma) project Irrigation (Gujarat) project Car parts (Sanand) project Five-star hotel and resort (Jetapur) project Road up-gradation (SuratDhulia) project
Source: projectstoday.com
Promoter ONGC Petro Additions Limited Universal Success Enterprises Limited Nuclear Power Corporation of India Limited Kandla Port Trust Popular Estate Management Limited Sardar Sarovar Narmada Nigam Limited Sona Koyo Steering Systems Limited Odhav Raj Hotel & Resorts Private Limited Gujarat State Road Development Corporation Limited
Cost (US$ million) 2,704.3 2,391.3 2,173.9 1,586.9 281.7 280.6 65.2 21.9 21.7
Industry Petrochemicals [Hydrocarbon] Coal/lignite-based power Nuclear power SEZ/EPZ Real estate Irrigation Automobile ancillaries Hospitality Roadways
Project ownership Central Government Private (Foreign) Central Government Central Government Private (Indian) State Government Private (Indian) Private (Indian) State Government
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GUJARAT
April 2010
Contents
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DOING BUSINESS IN GUJARAT Gujarat April 2010
A roadmap for doing business in Gujarat

Identification of location within Gujarat for setting the Industrial Unit setting up the project Approvals/Registrations/Filling with competent authority for set Registration of Business Organization
Land
Apply to Gujarat Industrial Development Corporation for Industrial Estates
Apply to the District Collectorate for Government Land
Private Land (Permissions from district collectorate )
Apply to the SEZ or Industrial Park developer for land
Apply to Forest & Environment Department for Forest Land
Obtain EC from MoEF, GoI for Category A projects. SEAC, F&ED, GoG for Category B projects (listed in EIA notification Dt14.09.2006)
Obtain CTE from GPCB(in case land is declared as dark zone)
In case land falls under Urban development authority limits, apply to UDA for Zoning / Zone Change Certificate and apply to District Collectorate for NA permission
Obtain permission under FCA & WPA from competent Authorities Obtain CRZ clearances (if applicable) from F&ED
Irrigation Department: Other Canals Local Governing Body : Surface Water CGWA : Ground Water Desalination Plants
Apply for Water to relevant Authorities
DEE in case of GIDC estates
GWIL
SSNNL : Narmada Canal
MGVCL , Vadodara
PGVCL , Rajkot (For Saurashtra & Kutch)
DGVCL , Surat (For South Gujarat)
UGVCL , Mehsana (For North Gujarat)
Apply for Power to the relevant Zonal Offices
(For Central Gujarat)
Apply for Gas to the relevant companies
GSPC Gas Company Ltd
Gujarat Gas Company Ltd
Gail (India) Ltd
Adani Energy Ltd ;
Sabarmati Gas Ltd
Charotar Gas Sahkari Mandali Ltd
Construction Permission from Urban Development Authority Apply for Factory License from department of Labour & Industrial Health and Safety
Source: Doing Business in Gujarat 2008, Government of Gujarat
Apply for Consolidated Consent and Authorization from
GPCB
101
Key approvals required (1/4)

Approvals and clearances required Departments

SSI Registration District Industries Centre (DIC) Industrial Entrepreneurs Memorandum (IEM) DIC/ Industries Commissionerate, Government of Gujarat Filing Industrial Entrepreneurs Memorandum (IEM) and Letter of Intent (LoI) Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India Letter of Permission (LoP) For automatic approvals - The Development Commissioner, Kandla Special Economic Zone, Ministry of Commerce and Industry, Government of India, Kandla (district Kutch), Gujarat. For other industries - Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India, New Delhi. Registrar of Partnership Firms, Government of Gujarat for partnership firms and Registrar of Companies, Government of India (office located in Gujarat) for corporations.
Approvals/registration/filing information for setting up project
Registration of business organisation
Authority for lands: In GIDC estate - Concerned office of Gujarat Industrial Development Corporation (GIDC)
Acquisition of land
Government land - Concerned district collector or collector/district development officer Private land (purchase of agricultural land for non-agricultural use) Private land owner Forest land - Ministry of Forest & Environment, State Wild Life Board, National Wild Life Board and Supreme Court (for land reserved for wildlife sanctuaries or national parks).
102

List of approvals and clearances required Clearance from Pollution Control Board Respective departments of states No Objection Certificate (NOC) to be obtained from Gujarat Pollution Control Board (GPCB) Environmental clearance:- Ministry of Environment and Forest, and Government of Gujarat (State Impact Assessment Committee). Authority depends of the purpose: GIDC estates - Zonal office Locations other than GIDC estates - Zonal distribution company Captive power - Gujarat Energy Transmission Corporation Limited (GETCO) Gujarat State Petroleum Corporation (GSPC) or private distributor. Authority depends on the location of unit: Proximity to Narmada Canal Sardar Sarovar Narmada Nigam Limited (SSNNL) For drawing canal/underground water other than Narmada Canal Irrigation department. For drawing water from the pipeline of Gujarat Water Infrastructure Limited (GWIL) GWIL Surface water Local governing bodies (municipal corporations) For the usage of ground water for industrial purposes from the area falling under dark zone, over-exploited area or saline area The Superintendent, from Gujarat, Water Resources Development Corporation (GWRDC) Water supply for industrial purposes within GIDC estateDeputy Executive Engineer of the estate concerned.

Arrangement of power Arrangement of gas
Arrangement of water
Approval of building plans
Authority depends on location of the unit, if the unit is located: In GIDC estates GIDC executive engineer in the region. Outside GIDC estates Director, Industrial Safety and Health, is authorised to give approval to plans of the premises, equipment layout and process layout, registration of factory and grant of licenses.
103

Approvals and clearances required Approval from Labour Department Approval from Commercial Tax Department Mining lease approval Boiler registration Handling of hazardous items Storage of explosive materials Customs bonding for 100 per cent Export Oriented Units located outside Special Economic Zones Quality certification Departments Labour Commissioner Value-Added Tax (VAT) registration and Central Sales Tax (CST) registration: Respective area officer in whose jurisdiction the chief place of business falls. Department of Geology and Mining Chief Inspectorate, Steam and Boiler, Government of Gujarat Director of Industrial Safety and Health, Government of Gujarat Directorate of explosives, Government of India Collector of Customs & Central Excise, Government of India Bureau of Indian Standards (office located in Gujarat)
104

Sector-specific approvals Sector Food and drug manufacturing units Registration for milk products Projects located within 500m of the coastline Single-window clearance Industrial Extension Bureau (iNDEXTb) provides single point contact for all investment activities in Gujarat
Source: Doing Business in Gujarat 2008, Government of Gujarat
Authority Commissionerate of Food & Drug Administration, Government of Gujarat Milk and Milk Products Board, New Delhi Gujarat Maritime Board
105
Cost of doing business in Gujarat

Cost parameter Cost of land (per sq ft) Hotel room cost (per night) Cost of office space (rent per sq ft per annum) Cost of residential space (rent per sq ft per annum) Power Water US$ 10 to US$ 150 US$ 40 to US$ 180 US$ 4 to US$ 12 US$ 2 to US$ 6.5 Fixed charges: US$ 1 Energy charges: US$ 0.07 to US$ 0.1 Commercial and industrial: US$ 10 to US$ 15 per month Labour cost in Gujarat Industry Agriculture Construction of roads and building Transport Industries Category of workers Un-skilled Skilled Un-skilled Skilled Un-skilled Skilled Minimum wages (US$/per day) 2.2 2.6 3.0 2.5 3.0 3.2 3.6 Cost estimates Source Industry sources Indian hotel survey Industry sources Industry sources Gujarat Urja Vikas Nigam Limited Gujarat Water Resources Department
Source: Labour and Employment Department, Government of Gujarat
106
Key nodal agencies in Gujarat (1/4)

Industrial Extension Bureau (iNDEXTb)
Promotes investment in industrial and infrastructure projects, acting as a single-point contact. Identifies new investment opportunities and preparing project profiles. Prepares and publishes status reports and status papers on different industry groups. Coordinates with various government departments, chambers of commerce and industry associations at the state and central levels, Premier promotional agency, for providing all basic infrastructure to the industries in Gujarat. Develops industrial estates at strategic locations all over the state. Also offers basic amenities in industrial estates. Develops functional estates to fulfil specific needs of certain industries. Checks environmental degradation by resorting to specific measures. Promotes agricultural activities at the ground level and helps in development of agro industries. Accelerates demand-based production of agro products to develop agro industries in the new global agricultural environment.
Gujarat Industrial Development Corporation (GIDC)
Gujarat Agro Industries Corporation (GAIC)
107

Gujarat Small Industries Corporation (GSIC)

Encourages the growth of industries in the SSI sector. Acts as an authorised distributor and stockists of steel producers. Assists SSI units by providing imported and/or indigenous raw materials. Attracts private sector investment in infrastructure development projects Frames policies for involvement of other public sector infrastructure development agencies Liaison with banks and other financial institutions interested in financing infrastructure projects. Finances industrial units in Gujarat and the Union Territories of Dadra and Nagar Haveli. Provides financial assistance to new and existing SSI units. Offers finance to SSI units for obtaining ISO-9000 certification, marketing and sales promotion activities.
Gujarat Infrastructure Development Board (GIDB)
Gujarat State Financial Corporation (GSFC)
108

Industries Commissionerate
The commissionerate functions under the Industries, Mines and Tourism Department of Government of Gujarat, and implements industrial policies of the state and central governments. Promotes development, monitors and controls functions for planned industrial developments in tiny, small, medium and large sectors, through a network of district industry centres, attached offices and industrial promotion corporations. Acts as a nodal agency for augmenting power generating capacity through private sector participation. Identifies power projects based on different fuels and prepares techno-economic feasibility reports. Obtains approvals from relevant authorities to prepare Power System Master Plan for the state. Contributes to the development of vital port infrastructure. Synchronises with hinterland development. Identifies green field ports for development. Specifies missing links in roads and railways and suggests upgrading existing links to facilitate easier approach to port locations.
Gujarat Power Corporation Limited (GPCL)
Gujarat Maritime Board (GMB)
109

Gujarat Industrial Investment Corporation Limited (GIIDC)

Finances medium and large scale industries. Arranges finance for large projects available in consortium with other central and state-level financial institutions and banks. Infrastructure financing and offering a variety of financial packages Identifies tourism potential in the state Undertakes the task of developing tourism and related commercial activities Maintains and upgrades tourism infrastructure and hotel projects with the help of privatised professional services Encourages investment for development of tourism-related infrastructure.
Tourism Corporation of Gujarat Limited (TCGL)
110
Contact list (1/2)

Key agency Contact information Block No 18, 2nd Floor Udyog Bhavan, Sector-11, Gandhinagar-382 017 Phone: 91-79-23250492/93 Fax: 91-79-23250490 E-mail: indextb@indextb.com Block No 4, 2nd Floor Udyog Bhavan, Sector-11 Gandhinagar - 382 017 Phone: 91-79-2325 0636, 2325 0637 Fax: 91-79-2325 0587, 2325 9359 E-mail: gmdevad1@sancharnet.in Khet Udyog Bhavan , Opp. Old Gujarat High Court, Ashram Road, Ahmedabad-380 014 Phone: 91-79-2754 4741-2, 2754 3743 Fax: 91-79-2754 2518 E-mail: gaicltdad1@sancharnet.in, gaicltd@gujagro.org Block Nos.6 & 8, Udyog Bhavan, 6th Floor, Sector-11, Gandhinagar - 382 011 Phone: 91-79-3223 653, 3232 280 Fax: 91-79-3232 166
Industrial Extension Bureau
Gujarat Industrial Development Corporation (GIDC)
Gujarat Agro Industries Corporation (GAIC)
Gujarat Small Industries Corporation (GSIC)
111
Contact list (2/2)

Key agency Contact information Block No 11, 8th Floor Udyog Bhavan, Sector 11 Gandhinagar - 382 017 Phone: 91-79-2324 9641-44 Fax: 91-79-2323 6230 Block No 10, 1st Floor, Udyog Bhavan, Sector-11 Gandhinagar - 382 017 Phone : 91-79-2325 6765, 2325 6766, 2325 9331 Fax : 91-79-2325 2204 E-mail: info@gsfc.growthnet.net Block No 18, 8th Floor , Sector-11, Udyog Bhavan Gandhinagar - 382 017 Phone: 91-79-2323 2701/ 4/ 6, 2324 1544 Fax: 91-79-2322 2481 E-mail: gidb@gidb.org Block No 1, 2nd Floor, Udyog Bhavan Sector-11, Gandhinagar - 382 017 Phone : 91-79-23252524, 23252526 Fax : 91-79-23252521 E-mail: comind@gujarat.gov.in
Gujarat Industrial Investment Corporation Limited (GIIDC)
Gujarat State Financial Corporation (GSFC)
Gujarat Infrastructure Development Board (GIDB)
Industries Commissionerate
112
Annexure
Exchange rates Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Average for the year
INR equivalent of one US$ 46.60 48.30 48.04 45.60 43.70 45.20 45.00 42.00 40.20 46.00
113
GUJARAT
April 2010
DISCLAIMER
India Brand Equity Foundation (IBEF) engaged ICRA Management Consulting Services Limited (IMaCS) to prepare this presentation and the same has been prepared by IMaCS in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of IMaCSs and IBEFs knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. IMaCS and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither IMaCS nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
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GUJARAT

Investment climate of a state is determined by a mix of factors

Resources/Inputs Incentives to industry

Investment climate of a state

Regulatory framework Physical and social infrastructure

ADVANTAGE GUJARAT Gujarat April 2010

Gujarat State profile

Source: Maps of India

ADVANTAGE GUJARAT Gujarat April 2010

Advantage Gujarat (1/2)

Source: Maps of India

ADVANTAGE GUJARAT Gujarat April 2010

Advantage Gujarat (2/2)

Source: Maps of India

ADVANTAGE GUJARAT Gujarat April 2010

Gujarat in figures (1/2)

ADVANTAGE GUJARAT Gujarat April 2010

Gujarat in figures (2/2)

PPP: public private partnership: SEZ: special economic zone

Parameter Policy support Sectors with specific policies Availability of labour

ADVANTAGE GUJARAT Gujarat April 2010

Key industries with policy thrust and factor advantages

Tourism Medium Chemicals and petrochemicals Gems and jewellery

Low Medium High

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Socio-economic snapshot of Gujarat

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Gujarats GSDP (US$ billion)

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Gujarats NSDP (US$ billion)

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Gujarats economy has contributions from all three sectors

Percentage distribution of GSDP CAGR

33.6% 20.3% 1999-2000 Primary Sector Source: CMIE Secondary Sector

33.0% 20.9% 2007-08 Tertiary Sector

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Per capita GSDP

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Employment distribution in Gujarat

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Brief profiles of key cities in Gujarat

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Key industries in Gujarat (1/2)

Gujarat contributes 16 per cent to the industrial production of the country.

Key industries in Gujarat

Source: Government of Gujarat website

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Key industries in Gujarat (2/2)

Share of industry sectors in Gujarat

Chemicals and pharma Petroleum Engineering Industries Food Processing

Textiles & Apparel Metallurgical Industries Mineral based industries Others

Source: Vibrant Gujarat summit, 2009

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Agriculture and dairy

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat April 2010

Investments and FDI inflows

Breakup of investments by sector

Manufacturing Mining Electricity Services Irrigation Construction 1.4%

Source: CMIE, as of December 2008

INFRASTRUCTURE STATUS Gujarat April 2010

Road map of Gujarat